Foss v Harbottle

obrowsing

Hey there , Ive an essay question basically asking why a lack of reform of the rule in foss v harbottle in the new companies act 2014 is a regrettable decision.
I understand the rule itself, the exceptions and how you can bring a derivative action against the company under these exceptions and broadly about s205 and oppression.
I'm just really struggling to find any sort of criticism or suggestions on why the rule may not work or could be changed in some way. Lecturer gave very little help . only gave a few links to english articles on derivative action but I still cant see the link between this and how the rule could be reformed. any suggestions/knowledge would be appreciated

Mr. Incognito

If you read the case law you will see that the rule is often abused by disgruntled minority shareholders to make smooth corporate life an impossibility.

Many times these are family disputes in family run companies etc.

A simple reform would be that any unsuccessful claim brought will result in the minority shareholders being forced to dispose of their shareholding to the majority.

chops018

If your lecturer gave you links to English articles, read them and use them to add in a section on internantional best practice and whether Ireland should follow Englands position or if they shouldn't etc.

Keane has some fun lines about company disputes in his book on company law.

You might also consider looking at the Rules of the Superior Courts in the context of Glynn v Owen and the comments of the High and Supreme Court.

ebrowsing

If you find a better answer Lemme know

MarkAnthony

What's with all the homework threads lately!

OP make sure you're using Westlaw and the various databases you have access to. Basically any assignment can be done with reading a few articles, sticking various snippets in your own words and drawing a conclusion at the end. Referencing accordingly, of course.

Your librarian is always a good source of guidance, especially if he's bald, moody and called Robert.