Forms of action, Business Law and Ethics

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Forms of action:

A minority of shareholders or an individual shareholder suing under one of the above exceptions may institute one of the following actions

i) A personal action

                   Where an individual member sues not in right of the company but in his own right to protect his individual rights as member, he can bring an action in his own name and may sue on behalf of himself and other members.  An example is Pender v Lushington in which a shareholder was able to enforce the article giving him a right to vote at meetings and compel the directors to record his vote.  Other instances in which an individual member can sue in his own name include:-

(a)   When the company is acting illegally or ultra vires;

(b)   Where a special majority is required and has not been obtained (eg. Edwards v Halliwell);

(c)    Where the company is acting contrary to its articles (eg. Wood v Odessa Waterworks Co Ltd)


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