Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Employment Law For Business

Authors: Dawn Bennett Alexander, Laura P Hartman

6th Edition

978-0073377636, 73377635, 978-0077347383

More Books

Students also viewed these Law questions