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
When operating a business, an owner has to make numerous decisions on a daily basis. In some cases, a decision may increase profits, but the owner is uncomfortable making such a de

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

Indicators of phoenix activity Stakeholders noted that there are a range of 'signals' or 'indicators' that phoenix activity may be about to occur. These generally occur before t

Law Society of US Establishment However it is established through sec 3 of the Law Society of US Act Cap 18.  Hence it is a body corporate through the name Law Society

Patrick works in the same office as Marian and they do not work well together. One day, Marian got credit for a job well done and Patrick got angry over it. He walked int

Explain whether Mike should be excused from not performing under the contract with Jim: Facts Mike ran an excavation business whereby he was contracted by builders to use his exca

Ddisadvantages - mergers and winding up: The disadvantages of s.280 are that cash may have to be provided to pay off creditors and dissenting members or alternatively the sale

Some of the hallmark events in the evolution of nuclear law are: a.   1945 - The United States tested its first nuclear bomb. b.   1945 - Hiroshima and Nagasaki were attacke

Contracts of Guarantee There the Law of Contract Act, 1961, S.3 (1) provides as follow: Actually "No suit shall be brought whereby to charge the defendant upon any type of

Question: Joe is the regional manager of a multinational company operating in your country. This business manufactures toys for children and sells them in several other countri