If the majority are abusing their powers, and are depriving the minority of their rights, there the minority are entitled to come before this court to maintain their rights’. (MacDougall v Gardiner) Critically analyse this statement. Additional information: Shareholders Rights, and the relation between majority of shareholders and minorities. The analysis focused on the business justification for majority power, (Majority Rule explained in Foss v. Horbottle case) and whether the majority can breach its duty (how). The “reasonable expectations” analysis, adopting the perspective of the minority shareholders and the remedies provided. (Case Law) Cases related to the topic : Main cases – Foss v. Horbottle, MacDougall v. Gardiner, Edwards v. Halliwell, Pender v. Lushington,, Prudential Assurance Co LTD v. Newman Industries LTD (No 2), Cook v. Deeks, Clemens v. Clemens Bros LTD, Statutory Protection of shareholders: – Companies Act 2006 – Oppression and s.216 C.A, Unfairly prejudicial Conduct-s.994 Petition by a company member, S. 460 CA 1985 – The Secretary State involvement/petition, Insolvency Act 1986. Helpful sources: http://www.slideshare.net/pnjm/c-law-lecture-7-rights-of-minority-shareholders-student-edition http://www.allbusiness.com/legal/laws/1058708-1.html http://www.lawteacher.net/company-law/essays/majority-rule-shareholders.php http://blog.sumitcbrty.com/2009/02/rule-in-foss-vs-harbottle.html Steps to Critically Analyse: 1)The basic premise – If the majority are abusing their powers, and are depriving the minority of their rights, there the minority are entitled to come before this court to maintain their rights’. Explain that shareholders have rights, specially the majority as described in Majority Rules (Foss vs. Harbottle case). However, the minority are also granted some protections. Provide some evidences in a form of exceptions to the general rule (Majority Rule) claimed. 2) Are general claims applicable to all situations?. It is wrong to use certain instance as general claim. Look at the similarities and difference between cases supporting general rules, and those providing exceptions (Case Law) and whether it needs specific conditions to be present. Present the Companies Act 2006 remedies for minorities. 3) Conclusion based on the premise and it’s exceptions, plus the arguments whether it’s applicable in all situations . It’s alright to have to claims, but the main conclusion should be one.
Place an order of a custom essay for this assignment with us now. You are guaranteed; a custom premium paper being delivered within its deadline, personalized customer support and communication with your writer through out the order preparation period.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more