Exceptions to the rule in foss v harbottle, Business Law and Ethics

Exceptions to the rule in Foss v Harbottle:

 According to Professor Wedderburn, the so-called exceptions are essentially no exceptions at all.  They appear to be circumstances in that such there is no chance of confirmation by the majority and to which the rule is, therefore, inapplicable.

However, the exceptions were summarised by Jenkins, L.J. in Edwards v Halliwell (100) as follows-

1. Ultra vires and illegality

  "Where the act complained of is wholly ultra vires the company or association the rule has no application because there is no question of the transaction being confirmed by whichever majority," (per Jenkins, L.J.)

 2.  Special majorities

 The rule in Foss v Harbottle does not prevent an individual member from suing if the matter in respect of which he was suing was one which could be done or sanctioned, not through a simple majority of the members of the company or association (i.e. an ordinary resolution), but only by some special majority (i.e. a special resolution) which has not been obtained.

Posted Date: 1/15/2013 3:00:03 AM | Location : United States







Related Discussions:- Exceptions to the rule in foss v harbottle, Assignment Help, Ask Question on Exceptions to the rule in foss v harbottle, Get Answer, Expert's Help, Exceptions to the rule in foss v harbottle Discussions

Write discussion on Exceptions to the rule in foss v harbottle
Your posts are moderated
Related Questions
INTERNATIONAL TRADE LAWS The laws controlling and regulating International trade have become one of the fastest growing areas of international law. International trade laws conce

Question 1: Discuss the main problems faced by judges when interpreting a piece of legislation. Question 2: A necessary evil': Would you agree with this definition of d

Purpose: To enable course registrants to apply their knowledge of ethical principles, skills in ethical analysis, and use of introspection to analyze an actual case that contains

General principles of Calls on contributories: If it is necessary to make calls on contributories the liquidator draws up a list "A" of contributories who were members at th

Illustrate the private bill of members? Private members’ Bill: It is where some MP’s are specified the chance (through ballot) to introduce a Bill on something which is o

Effect Of Rescission: Where a contract of allotment is rescinded, the former shareholder will be entitled to his money back (normally with interest) and to a refund of any exp

QUESTION 1 (a) Briefly explain 4 functions involved in ensuring compliance with contract requirements (b) Explain how changes regarding variations and price adjustments are

Q. Impact of phoenix activity on employ superannuation? Employees experience a range of impacts other than lost wages, entitlements and superannuation from phoenix activity. Fi

Many stakeholders emphasised that it would be difficult to quantify phoenix activity as phoenix operators are very skilled at 'flying under the radar'. Impacts, beyond those listed

Types and Classification of Law: Rules of law may be classified as like;: For Written For National and International For Public and Private For Substantive