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A shareholder dispute where one party, Boyle, who holds a majority share, allegedly breaches fiduciary duties by diverting business opportunities away from the company, Lite
A shareholder dispute where one party, Boyle, who holds a majority share, allegedly breaches fiduciary duties by diverting business opportunities away from the company, Lite Plastic Ltd, to another entity, Polymer Techniques in Manufacturing Ltd. Boyle holds 55% of the shares, giving him a majority and control over company decisions. Vrij holds 45%, which is significant but not enough to influence decisions unilaterally. Boyle is accused of breaching his fiduciary duty under common law, specifically the duty not to divert business opportunities that belong to the company- Section 131, which mandates directors to act in the best interests of the company. Since Boyle controls the majority, he can block any direct action by the company against him. Therefore, Vrij pursues a derivative action. This legal mechanism allows a minority shareholder to bring a lawsuit on behalf of the company when those in control are unwilling to do so. shorten case
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