Burland v Earle

Facts

A minority shareholder challenged the directors' management decisions, including the way dividends were dealt with.

Issue

Would the court interfere with the internal management of the company?

Held

No. The court will not interfere with internal management where the company acts within its powers, though a majority cannot appropriate company property to itself.

Principle

The court generally leaves internal management to the majority.

Why it matters

It confirms the scope of Foss v Harbottle.

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