Majority Rule

MAJORITY RULE The legal age conventionality in federation law of nature states that if the majority of fateholders do not like to pursue an exploit at law then the nonage is bound by that decision. The rule in foss v harbottle bear upon the majority rule. The rule in Foss v Harbottle (1843) is that when a incorrectly has been committed against the troupe, the proper claimant in appraise of that wrong is the troupe itself. The rationale for the rule is bothfold: 1. It prevents a numerous of legal legal proceeding being brought in the esteem of the same issue. If minority shareholders were permitted to startle such proceedings at that place could be hundreds of actions. 2. It upholds the normal of majority rule: if the majority of shareholders do not wish to pursue an action then the minority is bound by that decision. In Foss v harbottle the claimants were two share holders in the capital of Seychelles park company. They brought an action against the companys five directors and promoters, alleging that the defendants had steal assets belonging to the company and had improperly mortgage its property. The claimants sought an govern to compel the defendants to make good the losses suffered by the company. It was held that the actions essential fail. The harm in question was suffered by the whole company not just by the two shareholders.

It was open to the majority in the general meeting to admire the defendants conduct. To allow the minority to bring an action in these draw would risk queer the wishes of the majority. The case of MacDougall V Gardiner (1875) is a sp ortsmanlike application of the rule that ill! ustrates how it fits with the principle of majority rule, where again the COA held that the ass of the complain was something that in substance the majority of the shareholders were entitled to do not an undivided shareholder. Having considered the issue of standing to sue we immediately turn to examine the types of action available to the minority. * Representative action: brought by a...If you neediness to get a full essay, order it on our website: OrderCustomPaper.com

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