Minority Shareholders’ Remedies by A. J. Boyle

By A. J. Boyle

The present kingdom of English corporation legislation on minority shareholders' treatments is analyzed within the gentle of the united kingdom legislations fee, extra appraised and amplified by way of the corporate legislation overview steerage crew. The booklet covers the typical legislation activities via exception to the guideline in Foss v Harbottle, and the statutory treatments in terms of petition for unfair prejudice and/or simply and equitable completing. in addition to contemplating the complexities of by-product activities and statutory minority treatments, Boyle discusses destiny instructions for minority shareholders' treatments.

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66 This case concerned a provision in the articles that imposed a duty on shareholders to purchase the shares of a member who wished to dispose of his holding. It was held that this right could be enforced by virtue of the contract of association. It should be noted that section 14 makes the company a party to the contract of association even though, unlike the members, it is not deemed to have signed and sealed them etc. It is thus not strictly a party to the ‘deemed covenant’, though bound by the statutory contract.

Ltd v. Dixon [1943] 2 All ER 763. See Grant v. UK Switchback Railways (1889) 40 ChD 135 (CA). See Bamford v. Bamford [1970] Ch 212; and Prudential Assurance Co. Ltd v. Newman Industries Ltd (No. 2) [1982] Ch 204. See the further discussion of these issues in Chapter 2, p. 28 below. See further R. R. Drury, ‘The Relative Nature of a Shareholders’ Right to Enforce the Company Contract’ (1986) Cambridge Law Journal 219. This is an interesting attempt 18 Minority shareholders’ remedies Steyn L J’s observations in Bratton Seymour Service Co.

Landmark Finance Pty Ltd [1969] 2 NSWR 787 at 789. See Sir Jack Jacobs’ comment on Order 15, rule 12 in Supreme Court Practice, para. 15/12/9. See L. C. B. , London, Sweet & Maxwell, 1992), p. 660. 47 See pp. 30–1 above. Smith v. Croft (No. 2) [1988] Ch 114 at 189–96. 48 This may now provide the courts with new judicial techniques for resolving the factual issues relating to the locus standi of plaintiff shareholders in derivative proceedings. Since a procedural reform first introduced in 1994 as Order 15, rule 12A, the court has been given a range of procedural powers that should enable it to be more flexible in handling derivative proceedings – including the issue of de facto control in public listed companies.

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