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Hi,
I am confused on the following question:
The Articles of Association of ABC Ltd provide that all disputes between ABC Ltd and it’s directors must be referred to arbitration. Del is a director of ABC ltd and is in dispute with the company about late payment of his director’s fees. Which of the following is / are correct?
1- Del is obliged by the AOA to refer the dispute to arbitration, whether or not he is a shareholder.
2- Del is obliged by the AOA to refer the dispute to arbitration only if he a shareholder.
The answer is neither.
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The AOA contain rules on a number of areas, including: Powers, responsibilities and liabilities of directors so why is the 1 not an option?Thank you.
The Articles are the binding contract between:
the company and its members,
the members and its members and
the members and the companyBut where the Articles appear to be binding on a director or other interested third party, these people may only rely on the Articles as a binding contract in their capacity as shareholders
The case Eley v Positive Government Life Assurance Company is a case in point as also is the case Baillie v Baillie
OK?
So basically even though the AOA provides that director disputes are to be settled through arbitration, it is not binding because it is outside the scope of AOA to bind a director to the company?
Hi Sacca22,
Apologies, I know this is not the forum for this question but I’m not sure how else to connect. I have seen your posts on the FA forum and they were the same questions I had. I wondered if you were still sitting the FA exam and wanted to be study buddies?
Thank you
Hi sm8980!
Unfortunately I already sat the FA paper last month, but good luck on your upcoming exam!
Thanks for the response Sacca, what a shame (for me ?). Congrats on passing =)
All the best
Well! I’m glad that that’s resolved even if the resolution doesn’t suit everyone’s aspirations 🙂
And well done Sacca on passing your FA exam (as well as the Law paper)
Hi Sacca22, was wondering if you have written the F4 exam.
How is your studying going?I am as well preparing to write in a couple of weeks.
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