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Kaye v London Tramway

[1898] 1 Ch 358

Case summary last updated at 21/01/2020 20:05 by the Oxbridge Notes in-house law team.

Judgement for the case Kaye v London Tramway

Was provisional agreement for sale of an undertaking by one company to another. Purchaser agreed to pay substantial compensation to directors of company to compensate them for loss of office upon sale. Directors called meeting of members to approve purchase, but notice of meeting did not include reference to directors’ compensation payments. Held:
·       Notice was invalid
Ø  i.e. because it was inadequate
Ø  notice of meetings must be fair and adequate
·       Therefore approval of transaction by shareholders was also inadequate.

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