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Southern Foundries v Shirlaw [1940] AC 701

By Oxbridge Law TeamUpdated 04/01/2024 07:05

Judgement for the case Southern Foundries v Shirlaw

Table Of Contents

  • Claimant, a director, had a ten-year service contract with Defendant, company.

  • Power was inserted into articles allowing shareholders to appoint and dismiss directors at will. Claimant was dismissed prior to end of 10-year period.

Held

  • Articles were validly altered.

  • Existence of prior contract does not affect validity of a change in articles.

  • However director still had claim for damages.

    • I.e. as obligations in contract were not changed by alteration in Defendant’s articles. 

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Company law Notes
805 total pages
1071 purchased

Company law notes fully updated for recent exams in the UK. These notes...