Legal protection - significant instances, Business Law and Ethics

Legal Protection  - significant instances:

There are however a few but significant instances in which the Companies Act and the general law prescribe certain legal limits on the power of the majority to bind the minority of the company's members.  In particular, a resolution passed by the majority would not be allowed to prevail in certain circumstances if it is unfair or prejudicial to the minority, such as a resolution which -

(i) requires a member to take or subscribe for more shares than the number held by him at the date on which the resolution was passed

(ii) alters the company's objects;

(iii) reduces the company's capital in a way which is not "fair and equitable" between the different classes of shareholders;

(iv) empowers the company to embark on or continue with, a course of trading which was not contemplated by the minority at the time the company was being formed (in which case the court would be prepared to make an order for the winding up of the company on the ground that it is "just and equitable" to do so); or

(v) now there has constitutes "a fraud on the minority".

Posted Date: 1/15/2013 2:46:21 AM | Location : United States







Related Discussions:- Legal protection - significant instances, Assignment Help, Ask Question on Legal protection - significant instances, Get Answer, Expert's Help, Legal protection - significant instances Discussions

Write discussion on Legal protection - significant instances
Your posts are moderated
Related Questions
Function and Powers of Chairman: In the case of National Dwellings Society v Sykes Chitty, J. stated: "It is the duty of the chairman, and his function, to preserve order,

Question 1 Describe the term banking. What are the acceptable businesses for a banking company as per BR Act 1949 Question 2 When is a negotiable apparatus considered as dish

Treaty on Principles governing the activities of States The Treaty on Principles governing the activities of States in the Exploration and Use of Outer space, including the mo

Sense of Urgenc: Entrepreneurs have a never-ending sense of urgency to develop their ideas. Inactivity makes them impatient, tense, and uneasy. They thrive on activity and are tir

Wishes of members of parliament -Disadvantages law: However acts of Parliament do not reflect the wishes of the people as voters although the wishes of the individuals that wh

hi there, we are looking forward your assistance to do our business law assignment as we have 4 legal issue and we have to use law in commerce (5th edition) text book for that assi

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

Effect of Registration: S.16(2) of the Act provides that "from the date of incorporation mentioned in the certificate of incorporation the subscribers to the memorandum of a

What is the meaning of Inertia of Expectation We now move a bit away from the political economy of policy process to look into the inherent currents responsible for inaction an

EXPLAINING THE PURPOSE OF THE CB ASSIGNMENTS An essential part of understanding the law is being able to read, digest, and synthesize legal cases (also referred to as case law o