This chapter discusses the different types of company meetings and how meetings are convened and managed. It examines the different types of resolutions that may be made by shareholders both at meetings and outside meetings, and the rights of shareholders to propose their own resolutions. It explains the difference between voting by a show of hands and voting by poll. It considers the protection given by law to minority shareholders. It discusses the meaning of insider dealing and market abuse and the penalties they attract. The chapter concludes with a discussion of methods by which a company can be wound up and the meaning of wrongful and fraudulent trading.
Chapter
18. Company Law III
Company Meetings, Shareholder Protection, and Liquidation of Companies
Chapter
8. Members’ remedies
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter discusses the three principal remedies provided by law to members of a company: the derivative claim under Pt 11 of the Companies Act 2006 (CA 2006), the unfair prejudice remedy under Pt 30 of the CA 2006, and the petition for winding up the company under s 122 of the Insolvency Act 1986 (IA 1986).
Chapter
19. The unfairly prejudicial remedy and the minority shareholder
The most important shareholder remedy is the unfairly prejudicial petition under the Companies Act 2006, s 994. This chapter examines petitioning on the grounds of unfair prejudice, considers the basis on which equitable considerations come into play, addresses the range of conduct which may amount to unfairly prejudicial conduct, and explores the court’s expansive powers to grant relief. The chapter looks at purchase orders and the valuation issues around minority buy-outs as well as the potential for orders against third parties and in favour of the company. The chapter also considers the modern jurisdiction for winding up on the just and equitable ground under the Insolvency Act 1986, s 122(1)(g).
Chapter
11. Statutory shareholder remedies
Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter deals with statutory remedies available to aggrieved minority shareholders, particularly their right to seek relief through a winding-up order on the just and equitable ground. It first considers the classic case of Ebrahimi v Westbourne Galleries Ltd (1973), which addressed the scope of the court’s jurisdiction under the just and equitable ground, and presents illustrations of the grounds which will support a petition under s 122(1)(g) of the Insolvency Act 1986. It also examines the issue of whether the principles promulgated in Ebrahimi extend beyond the statutory context of just and equitable winding-up. In addition, the chapter discusses the elements of unfair prejudice; explains locus standi and procedural aspects of s 994 of the Companies Act 2006 together with the remedies contained in s 996; it also considers other specific statutory rights available to aggrieved minority shareholders. Finally, it explains the Law Commission’s proposed reforms for the unfair prejudice provision.
