Majority Rule And Minority Protection And Investigation Of Companies

Question 1

What section codifies the rule in Foss v. Harbottle

Answer 1

Section 341 of CAMA

Question 2

What is an ordinary resolution

Answer 2

Simple majority - 51/49

Question 3

What is a special resolution?

Answer 3

Three quarter majority - 75/25

Question 4

In the case of ……. it was held that a shareholder can sue to compel the company to record his vote

Answer 4

Pender V. Lushington

Question 5

What cage states that expulsion of the minority will amount to fraud unless it is done bonafide and for the benefit of the company

Answer 5

Brown V. British abrasive wheel

Question 6

What cage states that expulsion of the minority will amount to fraud unless it is done bonafide and for the benefit of the company

Answer 6

Brown V. British abrasive wheel

Question 7

What cage states that expulsion of the minority will amount to fraud unless it is done bonafide and for the benefit of the company

Answer 7

Brown V. British abrasive wheel

Question 8

What is a major asset transaction?

Answer 8

A major asset transaction is a sale or purchase of assets having value of more than 50% of the total asset of the company

Question 9

What section provides that where class rights are being varied 15% of the issued shares of that class may apply to the federal courts to cancel

Answer 9

Section 142

Question 10

Who can apply to cancel the change of a public company to a private company?

Answer 10

Members holding 5% of issued shares under section 64

Question 11

Who can requisition a meeting?

Answer 11

Holders of not less than 1/10 of a companies paid up share capital

Question 12

A major assets transaction is done by

Answer 12

Special resolution, unless the companies articles provides otherwise