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Sidebottom v Kershaw

[1920] 1 Ch 154

Case summary last updated at 21/01/2020 15:12 by the Oxbridge Notes in-house law team.

Judgement for the case Sidebottom v Kershaw

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
Ø  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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