Minority Shareholders’ Remedies

Cover......Page 1
Half-title......Page 3
Series-title......Page 4
Title......Page 5
Copyright......Page 6
Contents......Page 7
Preface......Page 9
Table of cases......Page 11
Table of statutes......Page 18
Introduction......Page 21
The origins of the English rule in Foss v. Harbottle......Page 22
Judicial analysis of the rule......Page 25
Judicial policies justifying the rule......Page 26
The minority shareholder as an ‘unfavoured litigant’......Page 27
The movement for reform......Page 30
Minority litigation against listed plcs......Page 32
The contract of association as a source of shareholder remedies......Page 33
The special character of the membership contract......Page 34
‘Outsider rights’ in the articles......Page 35
Theorising Foss v. Harbottle......Page 40
Difficulties with this theory......Page 41
The use of statutory remedies to ‘bypass’ the Foss v. Harbottle rule......Page 42
Direct and derivative actions......Page 44
The fraud on a minority ‘exception’......Page 45
Fraudulent character of alleged breaches......Page 46
Wrongdoer control......Page 47
The aftermath of the Prudential case......Page 49
Procedural reform: the Civil Procedure Rules as amended......Page 52
Funding derivative actions: costs indemnity orders......Page 56
The American version of the Foss v. Harbottle rule......Page 58
Subsequent development of the ‘demand’ rule......Page 60
The abuse of derivative suits......Page 61
The American Law Institute’s solution......Page 63
French law......Page 65
German law......Page 67
‘Direct’ shareholders’ suits......Page 69
Categories of direct action......Page 71
The procedural form of shareholders’ claims......Page 78
Financing ‘direct’ claims......Page 79
Introduction......Page 80
The ‘scope’ of the new remedy......Page 82
Majority shareholders......Page 83
Officers and employees......Page 84
The full range of directors’ duties......Page 86
Personal actions......Page 88
Primary legislation and rules of court: implementation of the new procedure......Page 90
The procedural framework for the application of leave......Page 91
The issues relevant to the grant of leave......Page 92
The ‘specific matters’ to be considered by the court......Page 94
The court’s power to adjourn so that the company may call a meeting......Page 101
Costs indemnity orders......Page 102
Pro rata recovery in a derivative action......Page 104
Multiple derivative actions......Page 105
Company failing to pursue proceedings......Page 106
The Scottish derivative action......Page 107
Conclusions......Page 108
Introduction......Page 110
Just and equitable winding up......Page 111
The concept of unfair prejudice......Page 114
‘Unfair prejudice’ in the House of Lords......Page 116
Varied applications of the remedy......Page 120
Choice of remedies......Page 122
The offer to buy as a bar to a winding up......Page 123
The offer to buy as a bar to an unfair prejudice petition......Page 125
The remedies available to the court......Page 127
Procedure......Page 129
Access and locus standi......Page 130
Theorising ‘unfair prejudice’......Page 132
The new additional unfair prejudice remedy for smaller companies......Page 139
The Law Commission’s critique of its own proposals......Page 140
The alternative approach......Page 142
Practical working of the presumptions......Page 144
Reflections and subsequent developments......Page 145
Winding up as a section 461 remedial order......Page 148
Requirements for leave......Page 149
Proposed limitation period for unfair prejudice proceedings......Page 151
The outlook for reform......Page 152
The right of exit: shareholders’ self-help......Page 153
Circumstances giving rise to exit right......Page 154
The method of valuation......Page 155
‘Independent person’......Page 156
Other ‘additions’ to Table A rejected......Page 157
Index......Page 160