SHAREHOLDERS AND DIRECTORS Flashcards
1
Q
Why would a minority shareholder in a private limited company find it difficult to bring an unfair prejudice claim against a director?
A
Will find it difficult to obtain some of the evidence required to bring the claim
- evidence will be held by the company
2
Q
What test does the court apply when dealing with unfair prejudice claims?
A
Objective test
3
Q
What type of resolution is used to declare a dividend?
A
Ordinary
4
Q
How would a minor shareholder bring a forth a derivative claim on behalf of the company?
A
- permission is needed from court
5
Q
What is a shadow director
A
- someone who has given instructions to a company director
- the director usually acts in accordance with those instructions
6
Q
What is a de facto director
A
Someone who
- never formally appointed
- acts as a director nethertheless.
