- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
MikeLittle.
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rimx
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Hello sir,
i needed some help regardin company law. I wanted to ask that articles don’t give rise to a contractual obligation between a company and a 3rd person to the company but i am bit confused that in the case of (Beattie V E.F Beattie) it was stated in the articles of the company that he is to held his office for life but he gets terminated by the company and although been a member of the company couldnt claim as it was a claim in a different capacity but in a same situation in the case of (Southern Foundries V Sharlow) he had been awarded damages for the breach on contract by the company so can you please tell me the difference between these two cases and also that even in the Beattie case he didnt had an outside contract but he was givin his services to the company nd the company was receiving his services so had not there been a contract too as in the case of Sharlow, please do answer me soon.
thankyou..
MikeLittle
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Firstly, may I point out that I find your post very difficult to understand and, if you write an answer in this style in the exam, you will also find that a marker has great difficulty! It’s rambling, unclear, ungrammatical and unpunctuated.
🙁
However, I think I understand your question! I believe that Beattie did not have a separate contract with the company in addition to the “contract” contained within the articles and, following Eley’s case, the Articles do not bind the company to a member acting in any capacity other than as a member.
The decision in Shirlaw ( please note, it’s Shirlaw and not Sharlow! ) upholds the Eley / Beattie decisions. However, in Shirlaw’s case the effect of the alteration of the Articles was to remove Shirlaw from office. This was not an alteration made with the intention of breaking a contract but it WAS an alteration having the collateral effect of breaking a contract. So, in Shirlaw’s case, compensation was payable.
It would be worthwhile you looking up the case re New British Iron Company ex parte Beckwith !
rimx
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Thankyou sir. And can you give me facts of the Beattie’s case and can you tell me any website where i can find all the facts of cases as google aint helpin much with it.
MikeLittle
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Try:
[PDF]
The Governance of Corporate Groups
catdir.loc.gov/catdir/samples/cam032/99053682.pdfFile Format: PDF/Adobe Acrobat
by J Dine – Cited by 82 – Related articles
rimx
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