Sidebottom v Kershaw [1920] 1 Ch 154
Country:
United Kingdom
Company altered its articles by adding provision allowing directors the power to buy out, at a fair price, any shareholder who competed with the business of the company.
A minority shareholder, who carried out a competing business, challenged alteration.
Held
-
Is entirely for benefit of company that members who compete with company be bought out
I.e. if they are members, more likely that they will get benefit of information which will help them compete with company.
Thus alteration is valid.
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