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hello
I have doubt in one of the question
The Articles of Association of ABC ltd provides that all dispute between ABC ltd and its directors must be referred to arbitration. Del is a director of ABC ltd and it is in dispute with the company about late payment of his director’s fees.
Which of the following is/are correct
i ) Del is obliged by the article of association to refer the dispute to arbitration whether or not he is a shareholder.
ii) Del is obliged by the ariticles of association to refer the dispute to Arbitration only if he is a shareholderA (i) only
B (ii) only
C Both (i) and (ii)
D Neither (i) nor (ii)Answer is D
I thought answer would be B as in Hickman v Romney Marsh sheepbreeder’s Association ( the articles are enforeable by the company against the members)
Sir can you please explain why did the mention D as the correct answer?
Articles only oblige the company and the members to comply. OK, so that eliminates options A and C
But the articles are binding on the members only in their capacity as members and not in any other capacity. Here Del is in dispute with the company but not in his capacity as a member. rather his dispute concerns him in his capacity as a director and not as a member.
Your better parallel would have been Eley v Positive Government Life Assurance Company
OK?
Can I ask, how much is it important to know those parallels between cases in exam questions and real case like Eley v Positive Government. I am just preparing to sit this level, but I don’t study those cases carefully. Should we know them well?
All the case in the lectures illustrate separate points of law so, in that respect, you should know them
Are you asking “Should I know the case names and stories?” If that’s your question, the answer is a resounding “No”
Yes, I meant, if it is enough to understand the points in the cases without remembering names. Thank you.
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