Principle of statutory provisions:

Most of the cases in which the principle has actually been applied appear to fall within one of the following two classes:-

1. Where the company is defrauded

(i)             Misappropriation of corporate property

                                                         Examples:

-     Like 'Menier v Hooper's Telegraph Works'

                                                                            -and like 'Cook v Deeks'

(ii)          Breach of duty by directors

                                                         Examples:

                                                                           -Alexander v Automatic Telephone Co.

     Where the minority as individuals are defrauded

(i)            Expulsion of minority

                                               A purported expulsion of a member from the company will amount to fraud unless it is done bona fide and for the benefit of the company.  The following cases are relevant:

                                      -Dafen Tinplate Co. Ltd. v Llanelli Steel Co. Ltd.

                                      -Brown v British Abrasive Wheel Co.

                                      -Sidebotton v Kershaw Leese & Co

(ii)          Inequitable use of majority power

                                                         Examples: Clemens v Clemens Bros Ltd. (99)