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separate legal entity concept says ownner of a company is legally separate from business or company so its mean company is separate legal person
mike this mean if director of company misuse any asset the owner can sue him because they are separate legallyOk, so if a director, without authority, uses a company asset then the shareholders would either ask for compensation / payment or they would remove him / her as a director
mike but in case foss vs harbottle 1843
two minority shareholder initiated legal proceedings against ,among others,the directors of company.they claimed that the directors had misapplied the companys assets
the court dismissed the claim and held that when a company is wronged by its directors it is only the company that has standing to sue
mike why court dismissed the directors are liable to shareholderBecause the directors are NOT liable to individual shareholders – they are liable to the company as a whole and, if a wrong is done to a company, it is the company that is the proper plaintiff.
It’s only if the company is being prevented from taking action – for example, the directors at fault are preventing the company pursuing those same directors – then a minority shareholder may take an action on behalf of the company
But you’re way too deep for F4 here!
Hello,
what is a difference between an ordinary resolution and a written resolution?
Have you watched the video on this?
A written resolution may be any type ie ordinary or special (but not ordinary with special notice) and is only available for private companies
An ordinary resolution is one that, to be passed, requires the approval of not less than 50% of the votes cast by members who are entitled to attend and vote and who do attend and vote
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