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In the context of company law, what is the justification behind the principle laid down in Foss v. Harbottle?
  • a)
    To ensure that the majority shareholders can always override the interests of minority shareholders.
  • b)
    To encourage individual shareholders to sue directors for any wrongdoings in the company.
  • c)
    To preserve the right of the majority to decide how the company's affairs are conducted.
  • d)
    To allow minority shareholders to take control of the company's management.
Correct answer is option 'C'. Can you explain this answer?
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In the context of company law, what is the justification behind the pr...
The principle laid down in Foss v. Harbottle is justified by the need to preserve the right of the majority to decide how the company's affairs are conducted. When shareholders become part of a company, they agree to abide by the decisions of the majority. This principle maintains the integrity of the company's management by allowing the majority to guide its direction.
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In the context of company law, what is the justification behind the principle laid down in Foss v. Harbottle?a)To ensure that the majority shareholders can always override the interests of minority shareholders.b)To encourage individual shareholders to sue directors for any wrongdoings in the company.c)To preserve the right of the majority to decide how the company's affairs are conducted.d)To allow minority shareholders to take control of the company's management.Correct answer is option 'C'. Can you explain this answer?
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In the context of company law, what is the justification behind the principle laid down in Foss v. Harbottle?a)To ensure that the majority shareholders can always override the interests of minority shareholders.b)To encourage individual shareholders to sue directors for any wrongdoings in the company.c)To preserve the right of the majority to decide how the company's affairs are conducted.d)To allow minority shareholders to take control of the company's management.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about In the context of company law, what is the justification behind the principle laid down in Foss v. Harbottle?a)To ensure that the majority shareholders can always override the interests of minority shareholders.b)To encourage individual shareholders to sue directors for any wrongdoings in the company.c)To preserve the right of the majority to decide how the company's affairs are conducted.d)To allow minority shareholders to take control of the company's management.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the context of company law, what is the justification behind the principle laid down in Foss v. Harbottle?a)To ensure that the majority shareholders can always override the interests of minority shareholders.b)To encourage individual shareholders to sue directors for any wrongdoings in the company.c)To preserve the right of the majority to decide how the company's affairs are conducted.d)To allow minority shareholders to take control of the company's management.Correct answer is option 'C'. Can you explain this answer?.
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