The concept of Minority Shareholding under Company Law скачать в хорошем качестве

The concept of Minority Shareholding under Company Law

The rule in Foss v Harbottle and under Section 299 of CAMA states that where an irregularity has been committed in the course of a company’s affairs or any wrong has been done to the Company, only the company can sue to remedy that wrong and only the Company can ratify the irregular conduct. The basis of this rule are: (i) the company will ultimately be the plaintiff to sue in respect of wrong done to it; (ii) the Court will not intervene in the management of company, where the irregularity being complained about is within the scope of powers of the majority shareholders to remedy or ratify by means of an ordinary resolution. In this case, a minority shareholder can bring an action in the name of the Company to remedy the wrong.