Bushell v Faith
1969 · [1970] AC 1099
Posted By lanbuk.com
- Facts
- The articles gave a director three votes per share on any resolution to remove him. A resolution to remove him was put.
- Issue
- Was the weighted voting clause valid in spite of the statutory power to remove a director by ?
- Held
- Yes. The House of Lords held the statute did not prevent a company from attaching weighted voting rights to shares on particular resolutions.
- Principle
- Under English law, weighted voting articles can entrench a director against removal.
- Why it matters
- Section 96 of the Act prohibits weighted shares, so its effect in Sierra Leone is doubtful.
Words and Latin in this note
- Ordinary resolution
- A resolution passed by a simple majority of the votes cast at a general meeting by members entitled to vote: section 200(1). Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.