Conditions for relief - statutory provisions, Business Law and Ethics

CONDITIONS FOR RELIEF:

In H.R. Harmer Ltd (1959) Jenkins L.J. summarised the conditions which must be met before relief under the section can be granted by the court when he stated that:

(1)   The oppression complained of must be complained of by a member of the company and must be oppression to some part of the members (including himself) in their or his capacity as a member or members of the company as such.

(2)   The facts of the case must not only be those that would justify the making of a winding-up order under the 'just and equitable' rule but must also be of a character which have in them the requisite element of oppression

(3)   Next is the phrase "the affairs of the company that are being conducted" suggests prima facie a continuing process and is wide enough to cover oppression by anyone who is taking part in the conduct of the affairs of the company whether de facto or de jare.

(4)   The word "oppressive" must be given its ordinary sense and the question must be whether in that sense the conduct complained of is oppressive to a member or members as such.  The strict application of these conditions by the English courts rendered the section largely ineffective as a minority protection section and culminated in its repeal by the English Companies Art 1980.  Only the following cases had been successfully brought under the section-                                 

(i)            Re.  H.R. Harmer Ltd (98), and

(ii)          Scottish Wholesale Co-operative Society Ltd v Meyer and Another (97).

The other applications had been dismissed on the grounds of non-compliance with one or other of the prescribed conditions.  No Kenya case appears to have been contested under the section and it is therefore not possible to evaluate the effectiveness of the section as, in Professor Gower's words, "a weapon in the (minority) shareholder's armoury".  The section would conversely be equally ineffective in Kenya if Kenya courts were to adopt the same restrictive conditions that have been postulated by the English courts.

Posted Date: 1/15/2013 2:53:32 AM | Location : United States







Related Discussions:- Conditions for relief - statutory provisions, Assignment Help, Ask Question on Conditions for relief - statutory provisions, Get Answer, Expert's Help, Conditions for relief - statutory provisions Discussions

Write discussion on Conditions for relief - statutory provisions
Your posts are moderated
Related Questions
State the International policy coordination In an international context governments can, in theory, offset adverse spillover effects originating from other nations. With fewer

Civil Case - African Customary Law Moreover customary law is applicable only in civil cases.  Thus the District Magistrate's Court's Act 1967, S.2 restricts the civil case

QUESTION 1 Barclays Bank in Mauritius has interviewed various candidates for the post of Chief Executive Officer. Its HR department has requested you to provide them with some

"Within a company there are many areas of potential disagreement among members. As the range of potential disagreement is very broad, so also is the scope for exploitation and abus

Fraud on the minority: The exception of "fraud on the minority" depends, whereas the company is defrauded, on "wrongdoer control," i.e. the individual shareholder must show th

Contracts of Indemnity Indemnity is the undertaking about primary responsibility to see like a certain act is performed there.If a particular contractual promise such constitu

1. Tort reform refers to proposed changes in the civil system that would reduce tort litigation or damages. Proposals include, among other things,putting a cap on the amount a plai

Appointment of Directors: In the absence of other provisions in a company's articles, the directors of the company would be appointed in accordance with the following provisio

Corgi was the breeder of prize-winning pedigree dogs that often sold for very high prices. Reynolds, a wealthy businessman who had recently retired, decided to purchase one of thes

Remedies of the Buyer - Sales of Goods (a)Damages for non-delivery Section number 51 (1) provides that whether the seller wrongfully neglects or refuses to deliver the go