- Published on
Legal Terms - fraudulent activity against the minority
An improper exercise of voting power by the majority of members of a company in which votes are not cast for the benefit of the company as a whole, as defined by common law. In general, the common law rules that were applicable in such cases have been superseded by sections 260–64 of the Companies Act 2006. Nevertheless, a common law derivative claim that is based on the concept of fraud on the minority continues to be applicable in cases where the Companies Act does not apply, such as in the case of a limited liability partnership (Harris v Microfusion LLP [2016] EWCA Civ 1212).
An improper exercise of voting power by the majority of members of a company in which votes are not cast for the benefit of the company as a whole, as defined by common law. In general, the common law rules that were applicable in such cases have been superseded by sections 260–64 of the Companies Act 2006. Nevertheless, a common law derivative claim that is based on the concept of fraud on the minority continues to be applicable in cases where the Companies Act does not apply, such as in the case of a limited liability partnership (Harris v Microfusion LLP [2016] EWCA Civ 1212).
0 Comments