Competency of Shareholders to File the Suit

To determine whether the shareholders are competent to file the suit, several factors need to be considered.

1. Standing to Sue
Shareholders typically have standing to bring a lawsuit on behalf of themselves and other shareholders if they can establish that:

- They are shareholders at the time of the alleged wrongdoing.
- They suffered harm or are at risk of suffering harm as a result of the alleged wrongdoing.
- The harm suffered is distinct from that suffered by the company itself.

2. Derivative Action
The action brought by the shareholder on behalf of himself and other shareholders is commonly known as a derivative action. In a derivative action, a shareholder sues the company's directors and/or officers on behalf of the company for a harm caused to the company itself.

3. Requirement for a Declaration and Injunction
In this case, the shareholder is seeking a declaration that decisions taken at the meeting were invalid and an injunction to restrain their implementation. To be successful in obtaining a declaration and injunction, the shareholder must demonstrate that:

- The decisions taken at the meeting were indeed invalid.
- The implementation of these decisions would cause harm to the company or its shareholders.
- The court has the power to issue a declaration and injunction in such circumstances.

4. Compliance with Legal Procedures
It is also crucial that the shareholder follows the legal procedures for filing a derivative action. This typically involves obtaining the necessary consent from other shareholders, complying with notice requirements, and ensuring that the action is filed within the applicable statute of limitations.

Conclusion
Based on the information provided, it appears that the shareholders may be competent to file the suit. However, the ultimate determination of their competency will depend on various factors, including their standing to sue, compliance with legal procedures, and the merits of their claims. It is advisable for the shareholders to consult with legal counsel to assess the viability of their case and ensure they fulfill all necessary requirements.

Q1 The articles of a company provided for the taking of a poll at a general meeting of the company if so demanded by five shareholders. At a general meeting the Chairman, in breach of the articles, declined to take a poll. One of the shareholders brought an action on behalf of himself and other shareholders against the directors and company, seeking a declaration that decisions taken at the meeting were invalid and seeking an injunction to restrain their implementation. Are the shareholders competent to file the suit?