• +44-190-022-0819 +44-190-022-0819
  • +1-248-268-9041 +1-248-268-9041
  • +61288800241 +61288800241

SEARCH SOLUTION

Search your solution from list of 1000+ questions

28-07-2018

Question

The overall objective of the law in this area [Statutory Derivative Claim, s260-264] is to strike a balance between the need to uphold the majority rule principle and the need to protect minority shareholders from abuse by the majority. Expressed differently, the intention of the Law Commission was to achieve a balance between facilitating the bringing of derivative actions, where the rule in Foss v Harbottle and its exceptions were seen to create undue difficulty, and the protection of companies from too early an interference in their internal management… Considering the statutory provisions in every case is a delicate balancing act. The court must tread carefully. If it adopts a very liberal attitude, this could have the undesirable effect of encouraging frivolous claims against directors, as feared by critics. On the other hand, if it adopts a very strict approach claimants would find themselves back in the common law position where claims were severely restricted, and the very purpose of the provisions would be defeated.”

 

Mujih, E. The new statutory derivative claim: a paradox of minority shareholder protection: Part 2 (2012) Company Lawyer, volume 33, issue 4, pages 99-107 at page 107.

 

Undertake a critical evaluation of whether the process of commencing a statutory derivative claim under the Companies Act 2006 successfully achieves the balance as identified in the above quotation or whether this balance had already been achieved under the exceptions to the rule in Foss v Harbottle. ?

Word Limit: 2000 words excluding footnotes and bibliography.

Product code: Law-QA246

Download Questions

This assessment is written to focus on the importance and relevance of the duty of directors to strike a balance between protecting the interests of majority stakeholders and minority stakeholders

Related Questions in (Other)

18-01-2018

Solution: As per Section 1 of the Thirteenth year plan describes about China’s two key objectives that will be accomplished if the National People’s Congress or the standing committee of this party passes t ...

13-07-2018

Solution: Simplify the following expression so that it contains only a single exponent of x. Solution (1): The expression can be written as ["2" "x" ^("-" "1" /"2" ) ("3" "x" ^"2" )^"2" ]^"3" /("4x" )^ ...

13-07-2018

14-07-2018

Solution: Excess weight and obesity has been found to be the national burden of Singapore government and has been the major issue for creating associated risk factors like cardiovascular disease, type-2 diabete ...

16-07-2018

Solution: 1. Explain some of the benefits a student may gain by studying philosophy. The benefits of studying philosophy are it can help to enable thinking logically as philosophy deals with the ideologies whic ...

24-07-2018

Solution: The purpose of this practical is to show you how we can estimate both the depth and size (in terms of mass anomaly) of various geological features using gravity anomalies. We will also see that gravi ...

26-07-2018

Solution: The dieticians help the service users to provide proper therapy like medical nutritional therapy and balanced diet as they can lead their life in an appropriate way. Diabetes is the common disease in ...

27-07-2018

Solution: 1. Explain some of the benefits a student may gain by studying philosophy. The benefits of studying philosophy are it can help to enable thinking logically as philosophy deals with the ideologies whic ...

30-07-2018

Solution: Stare decisis is the doctrine of precedent. It is cited by the courts when a particular issue has been brought before the court earlier and already a ruling has been given in such issue. According to ...