NISHANT
When Resolution Professional under the Insolvency & Bankruptcy Code is in control of the Corporate Debtor, it is obvious that it cannot be pleaded that the company is in the hands of a wrongdoer.
NISHANT MEHROTRA 31 Aug 2019

When Resolution Professional under the Insolvency & Bankruptcy Code is in control of the Corporate Debtor, it is obvious that it cannot be pleaded that the company is in the hands of a wrongdoer.

Madras High Court :: When Resolution Professional under the Insolvency & Bankruptcy Code is in control of the Corporate Debtor, it is obvious that it cannot be pleaded that the company is in the hands of a wrongdoer.


Held :: Pith and substance of Foss vs. Harbottle principle is viewed as majority is the hallmark of a corporate entity and the minority shareholders should always yield to the will of the majority shareholders. This Foss vs. Harbottle principle was followed in several English decisions subsequently. To be noted, Foss vs. Harbottle principle was propounded in 1843 and thereafter there have been several elucidations and expositions of Foss vs. Harbottle principle. As the law evolved and developed, it got crystallized that there can at best be only three exceptions to Foss vs. Harbottle principle.


The three exceptions are:


a) when an Act is ultravires the company or it is illegal;


b) when an act constitutes a flaw against the minority and the wrongdoers themselves are in control of the company; or


c) when a resolution that requires to be passed by a qualified majority, but has been passed by a simple majority.


This has been set out in Palmer’s Company Law.


When two plaintiffs constitute the entire set of shareholders in the second defendant company and therefore, there is no scope for construing minority vs. majority and Resolution Professional under the Insolvency & Bankruptcy Code is in control of the Corporate Debtor, it is obvious that it cannot be pleaded that the company is in the hands of a wrongdoer.


Case:

Mrs. Jai Rajkumar and Ors. vs. Stanbic Bank Ghana Limited and Ors.

Did you find this write up useful? YES 0 NO 0
Jackson Chloe   23 Aug 2024 7:42am
Hello everyone, i am hallen from Montreal , Canada. I was involved in a cryptocurrency investment platform and I invested a huge amount of my money into read more
Reply
Saephanch   4 Aug 2024 5:38pm
Hello Everyone, I want to publicly thank Alliance Digital Hack, a group of professional private investigator and a certified expert in Bitcoin Recovery read more
Reply
Williams Morgan   30 Jul 2024 5:51am
Who will ever believe that a herb can cure 12 years of HIV in my body, My name is Williams Morgan, I never believe that it will work, that is why I am read more
Reply
Rita C. Taylor   30 Jul 2024 4:07am
SHORT STORY ON HOW I RECOVER MY STOLEN CRYPTO 04-07-2024 Hello everyone I want to use this Medium to say big thank you to jetwebhackers @ gmail com for read more
Reply
Antony Gaye   24 Nov 2023 4:47pm
Juliet and I want to utilize this platform to warn everyone about Cryptocurrency scams. Juliet and I were struggling financially a few months ago before read more
Reply
Lori Koopman   17 Nov 2023 2:40pm
BTC AND CRYPTO CAN BE RECOVERED WITH THE HELP OF SPYWEB CYBER SECURITY The most devastating thing happened to me a few weeks ago when I mistakenly lost read more
Reply
mark williams   29 Aug 2023 10:17pm
I lost my money to an online scammer last month through crypto currency Bitcoin transactions, I tried all I could to get the money back at a point i came read more
Reply
  20 Jun 2023 4:19pm
ARE YOU A VICTIM OF INVESTMENT OR NFT SCAM? SCHEDULE A MEETING WITH AN ETHICAL HACKER ASAP FOR COMPLETE RECOVERY. ASOREHACKCORP is a financial regulator, read more
Reply
Timmy Anderson   12 Apr 2023 4:16pm
I would have lost all my cryptocurrency assets if not for the timely interference of the elite recovery assistance of RecoveryBureauC via gmaiL as I got read more
Reply
María José Alvaro   5 Apr 2023 1:12am
I had run my own business for years and had built up a tidy sum in savings for retirement, I planned to use the money to buy a mortgage-free bungalow read more
Reply
Vivian Marcus   31 Mar 2023 11:16pm
Hello my name is Vivian Marcus from the United State, i'm so exciting writing this article to let people seek for help in any Break up Marriage and Relationship, read more
Reply
Alan   22 Feb 2023 8:55pm
Loosing bitcoin and ethereum from my wallet , also lost NFTs to them scammers , until I met a recovery expert who help me recover Bitcoin. Explained to read more
Reply
Craigs   22 Feb 2023 8:54pm
more to withdraw, I got drained and tried to seek help. Thanks to This great expert for helping recover my bitcoin and also usdt investment from the website. read more
Reply
Wilkins Tamonte   20 Feb 2023 8:05am
The last time I was in a pickle I had to think outside the box. After searching far and wide in the internet I bumped into this professional team of hackers read more
Reply
Woods Calvon   17 Feb 2023 6:26pm
I ran a new stop sign on my old street. I didn't know it was there, and the sun was coming up in a direction that blinded me when I was driving to work read more
Reply
×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com