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Foss vs harbottle


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Published in: Business

Foss vs harbottle

  2. 2. Victoria Park Company• The company had been set up in September 1835 .• To establish a residential area to the east of Wilmslow Road, an "estate" of substantial houses in spacious grounds, where prosperous business and professional families could live .
  3. 3. Minority ShareholdersRichard Edward StarkieFoss
  4. 4. Claim The property of the company had been misapplied and various mortgages were given improperly over the companys property
  5. 5. Annual general meeting No action should be taken against them.
  6. 6. Judgment :The courtdismissed theclaim
  7. 7. Reason 1 : The "proper plaintiff rule" is that a wrong done to the company may be vindicated by the company alone. - Corporation has separate legal entity
  8. 8. Reason 2 :The "majority rule principle“ - states that if the alleged wrong can be confirmed or ratified by a simple majority of members in a general meeting, then the court will not interfere, cadit quaestio.