Case Law

Question 1

Which case established the principle that the company is a separate legal entity from its shareholders?

Answer 1

Salomon v Salomon & Co Ltd (1897)

Question 2

In which case was the concept of piercing the corporate veil introduced by the House of Lords?

Answer 2

Adams v Cape Industries plc (1990)

Question 3

Which case clarified the duties of company directors in relation to conflicts of interest?

Answer 3

Regal (Hastings) Ltd v Gulliver (1942)

Question 4

Which case established the duty of care, skill, and diligence expected of company directors?

Answer 4

Re City Equitable Fire Insurance Co Ltd (1925)

Question 5

In which case did the court rule that shareholders could not bring a claim on behalf of the company for a wrong done to the company?

Answer 5

Foss v Harbottle (1843)

Question 6

Which case outlined the circumstances in which minority shareholders can challenge the decisions of the majority?

Answer 6

Ebrahimi v Westbourne Galleries Ltd (1973)

Question 7

In which case did the court establish the principle that directors owe a fiduciary duty to the company?

Answer 7

Bristol and West Building Society v Mothew (1998)

Question 8

Which case determined that a company’s constitution is a statutory contract?

Answer 8

Hickman v Kent or Romney Marsh Sheep-Breeders’ Association (1915)

Question 9

In which case did the court emphasize the importance of corporate social responsibility for directors?

Answer 9

Briggs v James Hardie & Co Pty Ltd (1989)

Question 10

Which case established the concept of shadow directors in company law?

Answer 10

Re Hydrodam (Corby) Ltd (1994)

Question 11

In which case did the court rule that directors’ duties are owed to the company as a whole, not to individual shareholders?

Answer 11

Howard Smith Ltd v Ampol Petroleum Ltd (1974)

Question 12

Which case clarified the duty of directors to act in the best interests of the company?

Answer 12

Re Smith & Fawcett Ltd (1942)

Question 13

Which case established the principle that the majority shareholders cannot unfairly prejudice the minority?

Answer 13

Foss v Harbottle (1843)

Question 14

In which case did the court rule that directors must exercise their powers for proper purposes?

Answer 14

Howard Smith Ltd v Ampol Petroleum Ltd (1974)

Question 15

Which case determined that directors must exercise an independent judgment in decision-making?

Answer 15

Re Smith & Fawcett Ltd (1942)

Question 16

In which case was the duty of directors to avoid conflicts of interest emphasized?

Answer 16

Regal (Hastings) Ltd v Gulliver (1942)

Question 17

Which case clarified the duty of directors to act in good faith and for proper purposes?

Answer 17

Brace v Calder (1895)

Question 18

In which case did the court establish the duty of directors to promote the success of the company for the benefit of its members?

Answer 18

Companies Act 2006

Question 19

Which case determined that directors must exercise reasonable care, skill, and diligence in their roles?

Answer 19

Re City Equitable Fire Insurance Co Ltd (1925)

Question 20

In which case did the court rule that directors must act within their powers and for proper purposes?

Answer 20

Brace v Calder (1895)

Question 21

Which case clarified the duty of directors to act in the best interests of the company as a whole?

Answer 21

Re Smith & Fawcett Ltd (1942)

Question 22

In which case did the court emphasize the importance of directors avoiding conflicts of interest?

Answer 22

Regal (Hastings) Ltd v Gulliver (1942)

Question 23

Which case established the duty of directors to promote the success of the company for the benefit of its members?

Answer 23

Companies Act 2006

Question 24

In which case was the concept of shadow directors introduced to company law?

Answer 24

Re Hydrodam (Corby) Ltd (1994)