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What role does the principle of non-interference play in the context of company law?
  • a)
    It ensures that minority shareholders have the final say in company decisions.
  • b)
    It allows shareholders to challenge any decision made by the majority.
  • c)
    It prevents the court from interfering in the internal management of a company.
  • d)
    It requires shareholders to obtain the consent of the majority before taking legal action.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What role does the principle of non-interference play in the context o...
The principle of non-interference in the context of company law prevents the court from interfering in the internal management of a company. This principle is exemplified in cases like Foss v. Harbottle, where individual shareholders are limited in their ability to sue directors for alleged wrongdoings. Instead, the company itself is considered the proper party to bring action in such cases, preserving the autonomy of the company's management.
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What role does the principle of non-interference play in the context of company law?a)It ensures that minority shareholders have the final say in company decisions.b)It allows shareholders to challenge any decision made by the majority.c)It prevents the court from interfering in the internal management of a company.d)It requires shareholders to obtain the consent of the majority before taking legal action.Correct answer is option 'C'. Can you explain this answer?
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What role does the principle of non-interference play in the context of company law?a)It ensures that minority shareholders have the final say in company decisions.b)It allows shareholders to challenge any decision made by the majority.c)It prevents the court from interfering in the internal management of a company.d)It requires shareholders to obtain the consent of the majority before taking legal action.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 What role does the principle of non-interference play in the context of company law?a)It ensures that minority shareholders have the final say in company decisions.b)It allows shareholders to challenge any decision made by the majority.c)It prevents the court from interfering in the internal management of a company.d)It requires shareholders to obtain the consent of the majority before taking legal action.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 What role does the principle of non-interference play in the context of company law?a)It ensures that minority shareholders have the final say in company decisions.b)It allows shareholders to challenge any decision made by the majority.c)It prevents the court from interfering in the internal management of a company.d)It requires shareholders to obtain the consent of the majority before taking legal action.Correct answer is option 'C'. Can you explain this answer?.
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