By Janet Dine (auth.)
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642 Insolvency (No. 6 Oversea Companies and Credit Financial constitutions (Branch Disclosure) Regulations 1992 303 298 298 302 299 299 300 29 277 277 29 332 Partnership and Unlimited Companies Regulations 1993 331 Public Offers of Securities Regulations 1995 85, 91, 92, 94--5, 96 Stock Exchange (Listing) Regulations 1984 (SI 1984 No. 5 88 Theft Act 1968 Theft Act 1978 Trade Descriptions Act 91 91 39 1 1 The Reasons for Forming Companies 'The limited liability corporation is the greatest single discovery of modern times.
Rn two ways whrch he thinks are beyond therr powers . Now can a majority compel a dissentrent unit in the company to grve way and to submrt to these payments? We must go back to the root of things. The money which rs going to be spent is not the money of the majority. That rs clear. It is the money of the company, and the majority want to spend rt. What would be the natural limit of their power to do so? They can only spend money whrch is not therrs but the company's if they are spending rt for the purposes whrch are reasonably incidental to the carrying on of the business of the company.
Thus, at formation the owners alone are involved. The United Kingdom courts have tended to carry this theory into the period when the company is full operation. ' Numerous cases equate the interests of the shareholders with the interests of the company. This has the effect of excluding other interests from consideration in the way the company is run, in particular leaving creditors and employees as 'outsiders'. This model is reflected in the structure of UK companies where employee directors are rare and shareholders elect the whole of the management team.
Company Law by Janet Dine (auth.)