What can Emily do? Flashcards
(6 cards)
1
Q
Emily, as a minority shareholder, can pursue what?
A
A derivative claim under s.260
2
Q
What could happen if Emily is successful?
A
- Director in breach forced to make good any loss suffered by the company and usually enforced to pay damages
- Injunction could be put in place
- Director can be disqualified
3
Q
What are Emily’s two options?
A
- Statutory derivate claim
- Unfair prejudicial claim
4
Q
What is the Statutory derivative claim?
A
- CA 260-264
- where a minority shareholder can bring a claim on behalf of the company for a wrong done to the company
- court usually orders directors to reimburse - company remedy
5
Q
What is the unfair prejudicial claim?
A
- personally claiming your rights are infringed
- payment by directors goes to you directly - personal remedy
6
Q
Example of statutory derivative claim
A
Foss v Harbottle
- about selling land
- sold for improper prices
