Negligence - statutory provisions, Business Law and Ethics

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NEGLIGENCE:

It is still uncertain whether damage caused by negligence can be brought under the heading of "fraud" for the purpose of the exception of "fraud on the minority."

In Daniels v Daniels the judge said that a minority shareholder who had no other remedy should be able to sue whenever directors use their powers intentionally or unintentionally, fraudulently or negligently, in a manner which benefits them at the expense of the company.

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