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

Assignment Help:

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.


Related Discussions:- Exceptions to the rule in foss v harbottle

Compliance conference , Can general jurisdiction be obtained? Explain why/w...

Can general jurisdiction be obtained? Explain why/why not.  The Company has paid for three (3) trips for Patty to attend Prop 65 conferences in CA.  You discover that she did no

Position in relation to the company - company secretary, Position in Relati...

Position in Relation to the Company: In 1882 Lord Esher in Barnett, Hoares & Co v South London Tramsways Co stated that: "A secretary is a mere servant; his position is tha

Name based definition of phoenix activity, Q. Name based definition of phoe...

Q. Name based definition of phoenix activity? The approach taken in New Zealand has been to define phoenix activity in terms of the re-use of the name, or a name similar, to th

A contract of employment or a procedure agreement, QUESTION 1 Write in ...

QUESTION 1 Write in detail on the following (a) Agency shop orders and (b) Decrease from the remuneration of a worker for the employer's benefit QUESTION 2 An indust

Issuing shares at a discount - allotment of shares, Issuing shares at a dis...

Issuing shares at a discount: In Ooregum Gold Mining Co of India Ltd v Roper (45) the House of Lords held that it is illegal for a limited company to issue its shares at a dis

Partnership agreement - voidable contracts, Partnership Agreement - Voidabl...

Partnership Agreement - Voidable Contracts Conversely an infant is bound at common law through a partnership agreement although he is free to repudiate it at all time during i

When do property, QUESTION 1 (a) What are the ways in which a contract ...

QUESTION 1 (a) What are the ways in which a contract may be terminated? (b) Elaborate on two of them QUESTION 2 When do property, risk and title pass in a contract?

Contract condition, 1. What is the difference between modifying a contract ...

1. What is the difference between modifying a contract under common law and modifying a contract under the UCC? 2. What is a "waiver" and what are its implications? 3. What i

International law relating to air and outer space, International law relati...

International law relating to air and outer space International law relating to air and outer space is an extensive and important area. It regulates at global level and its si

Loans - void contracts, Loans - Void Contracts However all loans made ...

Loans - Void Contracts However all loans made for an infant are void and irrevocable.  Since in Leslie Ltd. v. Sheill the infant defendant had obtained two advances of two hun

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd