Nobody downloaded yet

The Basis Of The Contract Between The Company And Its Members - Case Study Example

Comments (0) Cite this document
A company is a separate legal entity and is competent to enter into a contract. The paper "The Basis Of The Contract Between The Company And Its Members" discusses the nature of a contract by a company with its shareholders and the manner in which it is enforced between them and among the members…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.9% of users find it useful
The Basis Of The Contract Between The Company And Its Members
Read TextPreview

Extract of sample "The Basis Of The Contract Between The Company And Its Members"

Download file to see previous pages Enforcement of contract arises when one of the parties commits a breach of terms and conditions of the contract.
Section 14 of the Company Act 2006 (CA) makes the articles of association, on registration of the company, to become a contract between the company and members and it has been observed by Stein LJ in Bratton Seymour service Co Ltd v Oxborough1that “it is a statutory contract of special nature with distinctive features”2 Within the perspective of company law, it is of special nature because the terms of contract can be varied by special resolution and its enforcement by the members is limited to a certain extent and no outsider has any rights. And section 33(1) of the CA provides for a number of ways to be different from a normal contract. The provisions of the constitution of a company bind the company and its members in a manner as if there are covenants on the part of the company and on the part of each of its members to comply with those provisions. This position emerges once the company is registered as set in section 33 (1) of the CA. It, therefore, follows that provisions in the articles are enforceable by the company against its members, by a member against another member, and by a members against the company limited to their membership rights of attending meetings, voting, eligibility for dividend and to assert the rights to ensure that the company is managed as per the constitution.
Usually, there will be a condition in the articles to provide for referring by the company to arbitration disputes between the company and members. A company can enforce compliance of this obligation. This is supported by the decision in Hickman v Kent or Romney Marsh Sheep-Breeders’ Association where the court upheld the relevant clause in the articles for arbitration. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The Basis Of The Contract Between The Company And Its Members Case Study - 2”, n.d.)
The Basis Of The Contract Between The Company And Its Members Case Study - 2. Retrieved from
(The Basis Of The Contract Between The Company And Its Members Case Study - 2)
The Basis Of The Contract Between The Company And Its Members Case Study - 2.
“The Basis Of The Contract Between The Company And Its Members Case Study - 2”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Basis Of The Contract Between The Company And Its Members


.... The Articles of Association The contractual basis of the articles of association has been fortified by recent company law reforms in the UK. The fundamental contractual principles reside in the fact that the articles of association form a statutory contract that creates rights and duties not only between the company and its members but also between “the members inter se”.36 Unlike a standard contract however, the articles of association binds both current and future members to the duties and rights contained in the articles of association.37 Prior to...
16 Pages(4000 words)Essay

Things that strengthen love between family members

...? Things that Strengthen Love between Family Members Family is the basic unit of society. It may sound a bit cliche, but the resounding truth is thatthe great political community and the great men of the world whose names now belong to the archives of history all come from the cradle of this tiny unit. We learn our basic values from our families, from proper toilet training, to washing the dishes, and making friends instead of foes, and we die with our families grieving and mourning while we are headed to our final destination. In this journey from womb to tomb, love does exist between family members. Familial love exceeds than that of an erotic love that a family...
4 Pages(1000 words)Essay

Contract between criminological theories

...? Contract between criminological theories Introduction Criminology has over time focussed on the reasons thatmotivate people to commit a crime. The debate on why people choose to commit crimes has been central to the issue regarding the best way to prevent and handle crime. Numerous theories have come up with the main aim of explaining the causes of crime. Over the years, these theories have been modified to explain the causes of crime comprehensively. Criminologists aim at reducing the incidences, as well as the level of crime taking place. Some of the most common approaches that explain crime include the classicism and the positivism approaches. Under the classicism approach, there are control...
6 Pages(1500 words)Essay

Company Law and its results the issue of non payment of dividend. The company should circulate the representation among Boss and Harris the only other members of the company. It is quite obvious that the ordinary resolution removing Jamal as director can be passed as an ordinary resolution in the general meeting with the majority of share holding between Boss and Harris. But it appears that Jamal does not have a strong case against Boss and Harris as they have not acted against the interest of the company except that no dividend was declared by the company. Declaration of dividend is an issue to be decided by the board of directors based on the distributable...
4 Pages(1000 words)Case Study

Contract Law As the basis of Business Law

...1 Contract Law The law of contract is the basis of business law. This remains so despite a considerable erosion of the principle of the freedom of contract. In the nineteenth century this concept was a central component of the economic doctrine of laissez-faire. The laissez-faire theories dictated that market forces and enlightened self-interest rather than government intervention-would keep the economy working well. Under this doctrine the role of contract law was to provide a means for business people to enter into legal relations with each other-in short, to make a deal. (Graw) A G Guest in Chitty on...
5 Pages(1250 words)Essay

Dynamics between Family Members in Hamlet

...Dynamics between Family Members in Hamlet The greatest tragedy, or the most talked about, Hamlet has made a special mark ‎in the world of literature. Written by William Shakespeare, it was famous even in ‎the early days. The play revolves around the young Prince of Denmark Hamlet, ‎who is shattered by the death of his father, so much so that he is seeing the ghost ‎of the King who is telling him to avenge his death. The ghost tells him that he was ‎killed by his brother Claudius who has now taken the throne by marrying his ‎widow, Hamlet’s mother. ‎ The plot unfolds in a lot of twists and turns where eventually everyone is killed in ‎a most unpredictable or accidental manner. However, the more important...
6 Pages(1500 words)Research Paper

Communications between Group Members

...Group Organization Maintaining positive communications between diverse group members is one of the most important issues facing the group. All of the members of the group have very different demographic backgrounds and differing principles and value systems. These dictate the quality of discussion and willingness (or lack thereof) to listen to others and consider their feedback. Not all members of the group have quality leadership skills, problem-solving abilities, or emotional intelligence. The most important thing is establishing a method of facilitating communications between group members without a great deal of emotional influence...
1 Pages(250 words)Essay

Community Members

...COMMUNITY MEMBERS Poor people in Philadelphia are selected as the targeted population for the proposed study. Information from archival data and research available indicates that the whole of Philadelphia is prone with a number of health needs, and these needs worsen among the poor communities within the territory (Calfee and Scheraga, 2012). It is for the abundance of such health needs that demand urgent attention and interventions that the poor people in Philadelphia have been selected as the most preferred population for the health promotional proposal. Archival data and research findings made available by Healthy People 2010 and the U.S. Department of Health and Human Services (2012) indicates that “Philadelphia...
1 Pages(250 words)Assignment

Contract Management for IT company

... result in certain legal liabilities for both the suppliers and the contract manager or the company. Notably, when a dispute occurs within any contract in the IT sector, one or both the parties will have the liability to enforce the contract on the basis of its predetermined terms and conditions. In certain conditions, the parties who are harmed most from the dispute will have the liability to acquire financial remedy for the loss occurred. There are also certain off-court options that will be liable for both the parties as per the legal norms under the contract law. This might be in the form of out-of-court settlement of the dispute along with conducting a mediator analysis of the dispute of the contract (Thomson Reuters 2014... ...
12 Pages(3000 words)Essay

Advantages of Team Work and Its Strong Positive Relationship Between the Members: Education Institutions

...members should spend 2 hours per day making calls that are not related to their task. As a team leader, one should train his or her members on how to draw a distinct line between the unnecessary and necessary things during the discussion. Actually, one should be very strict in determining the necessaries to avoid wasting timer on the things that are of no value when undertaking a particular task. On his studies on time management, Secunda (1999) argues that a team should be able to plan its work. A team that starts its activities without a solid plan will in most cases accomplish nothing. As a leader of the team, one should take fifteen to twenty minutes...
8 Pages(2000 words)Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic The Basis Of The Contract Between The Company And Its Members for FREE!

Contact Us