What are the exceptions to the rule in Foss vs Harbottle?

Oppression and Mismanagement – 397 and 398 of the Indian Companies Act which provide for prevention of oppression and mismanagement, is an exception to the rule in Foss v. Harbottle which lays down the Sanctity of the majority rule.

What was the rule in Foss v. Harbottle?

The general principle – commonly known as the rule in Foss v Harbottle – is that it is for the company itself to bring proceedings where a wrong has been done to the company.

What is majority power rule describe with exceptions?

Majority Powers The resolution made by the majority should not be inconsistent relating to The Companies Act or any statutes. It should also not commit fraud on the minority by removing their rights.

What is the proper plaintiff rule?

The first limb is known as the “proper plaintiff” rule and is based upon the principle that a company is a separate legal entity, distinct from its shareholders. 24. A wrong done to the company is not a wrong done to. the shareholders, and should be redressed by the company itself, taking action in its own name.

Who Cannot become a member of a company?

Individuals like minor, insolvent person, insane/lunatic person and Foreigner (if the provisions of the Foreign Exchange Management Act, 1999 do not allow to become a member) cannot become a member of the company.

Which is not a case of lifting of corporate veil?

The liquidator personal liability is limited to the amount notified by the Income Tax officer under section 178 (2) if so notified. This is strictly not a case of lifting the corporate veil but one where for non- compliance with certain provisions in the I.T.

Which of the following requirements must be satisfied for seeking a relief under section 397?

As an alternative, it was urged that in a petition for relief under sections 397 and 398 the petitioner must specifically make four independent averments, namely, that the affairs of the company are being conducted in a manner, (i) prejudicial to the public interest, (ii) or in a manner oppressive to any member or …

What are the kinds of tribunal under company law 2013?

The following are the National Company Law Tribunal benches and its respective jurisdictions:

• NCLT, Principal Bench and NCLT, New Delhi Bench.
• NCLT, Ahmedabad Bench.
• NCLT, Allahabad Bench.
• NCLT, Bengaluru Bench.
• NCLT, Chandigarh Bench.
• NCLT, Chennai Bench.
• NCLT Guahati Bench.
• NCLT Hyderabad Bench.

What is cessation of membership?

Cessation of Membership means the date on which a Member has ceased to be a Member of this Part of the Fund. A Member shall cease to be a Member of this Part of the Fund on the Required Payment Date.

How does a person cease to be a member of a company?

A person may cease to be the member of the company: If he transfers his shares to another person. But the insolvent remains a member as long as his name appears in the register of the company. Death.

What is a corporate veil explain any four circumstances under which it can be lifted?

The corporate veil can be lifted when a corporate entity is used in defence proceedings or as a shield to cover wrongdoings in tax matters or for a commission of tax evasion.

Under what circumstances can the veil of incorporation be lifted?

The court will lift the veil of incorporation of any company to find out who was behind the fraudulent and improper conduct. This would be necessary where the canopy of legal entity is used to defeat public convenience, justify wrong, perpetuate and protect fraud and crime….

When does the rule in Foss v Harbottle apply?

The rule in Foss v Harbottle applies only as long as the company is acting within its powers. Ultra Vires Acts are any acts that lie beyond the authority of a corporation to perform.

What was the name of the company in Foss v Hobart?

FACTS OF FOSS v. HARBOTTLE The company named “Victoria Park Company”, had been set up in September 1835. Richards Foss and Edward Starkie Turton, who were minority shareholders in the company, commenced legal action against the promoters and directors.

Can Harbottle rule be applied in India?

Harbottle Rule to Indian situations, conditions and corporate realities would be both inapposite, improper and indeed misleading. The operative field of said rule extends to cases in which corporations are competent to ratify managerial sins.