The Oppression Remedy Is Not Just a Shareholder Remedy

question 40

Essay

The oppression remedy is not just a shareholder remedy. It creates a standard of behaviour for management which is different from the fiduciary duty and duty of care, and one which is potentially more important for shareholders because it can be enforced by shareholders directly. Do you agree with this description of the oppression remedy?

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Definitions:

Anticipated Regret

The emotional distress one expects to feel from a potential future outcome of making a particular choice.

Decision Avoidance

A behavior or tendency to defer, avoid, or abandon making choices to avert potential negative outcomes or regret.

Certainty Effect

The tendency for people to overvalue outcomes that are certain compared to those that are only probable.

Reactance

A motivational reaction to offers, persons, rules, or regulations that threaten or eliminate specific behavioral freedoms, prompting a desire to regain them.