Discuss how English Company Law addresses the concern regarding the protection of minority shareholders?

The law concerning correct ratified personality is largely governed by the 19th century case Foss v Harbottle, this case translates the article of faith of separate legal personality, the statutory signalise and the principle of the plentitude rule. In Foss v Harbottle two members of the Victoria park Co brought an action against five directors and promoters alleging that they had misapplied the comp eachs assets and had improperly mortgaged it property. The plaintiffs wanted to hurl any redes that were suffered by the association. However the court held that loss in question was non suffered by the plaintiffs alone tho the company it self. Also the fact that it was open to the absolute majority in a general meeting for consent showed that the plaintiff submit had to fail. The precept behind is that a company is a separate legal entity with an identity of its own rise by the articles and the memorial of association. This contract lays down the basis of the legal r elationship amid the company and its members. As a result the member agrees to be bound by the decisions of the majority. Once a resolution is passed by the majority of the draw holders any dissenting members will heretofore be bound by it. It may seem that nonage servingholders be in a weak position in a company. That they would not be able to exercise any influence on the company and are effectively inhibit by majority shareholders. However, English law acknowledges the concerns of minority share holders and is trying to water faucet an optimum balance between the majority rule on one hand and the rights of share holders on the other. Minority shareholders are those members holding 50% or less of the companys share become little power within the company as they cannot be certain of passing any... If you want to get a secure essay, order it on our website: BestEssayCheap.com

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