JSB171 Lecture Notes - Lecture 1: Objective Test, Njörðr, Selective Reduction
Document Summary
Rights: right to vote (usually one vote per ordinary share): s250e, right to distributions eg dividends, right to information eg inspect company"s books: pt 2f. 3 ca, class rights where different classes of shares exist: pt 2 f. 2. Powers: s198a: adopting and amending constitution: s 136(2) ca, appointing and removing directors: s 201g, s 203 c, d ca. Controlling members & doctrine of fraud on the minority. Much more important in pty companies in public coy shareholders can sell their holding and escape more easily. Qualification to general principle that shareholders may act in self-interest: peters american. Majority must not use voting power for purpose which reasonable person would say is outside that contemplated by company"s constitution or replaceable rules: peters american delicacy v heath; Appropriating rights or property: menier v hooper"s telegraph works (1874); Majority refusing to seek remedy after wrong against company: biala pty ltd v.
