The protection of minority investors is measured by the World Bank through an assessment of transparency of transactions, the ability of a shareholder to seek legal recourse and the cost of such recourse.
In South Africa section 163 and section 164 of the Companies Act 71 of 2008 is applicable. It provides minority shareholders the opportunity to express their opposition to the decisions of fundamental transactions adopted by a company. It also provides them with the opportunity to leave the company by being paid a fair value for the shares held in the company. The Companies Act established the Takeover Regulation panel and other entities tasked with the responsibility of interpreting and applying the provisions aimed to protect minority shareholders. The main purpose of the TRP is to ensure the protection of minority shareholders by ensuring that shareholders are provided with sufficient information and time to make informed decisions about offers and transactions undertaken by a company. In other words, it provides a shareholder the opportunity to approach a court, to seek relief when a company conducts itself in a manner that is oppressive or unfairly prejudices the rights of a minority shareholder.
Rankings are determined by means of a survey and the collection of data/information from corporate and security lawyers as well as on securities regulation, company laws, civil procedures codes and court rules of evidence.
South Africa is ranked 13 out of 190 economies for the protection of minority investors and the score as a percentage is 80 which is an exceptionally high score.