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Wright v Atlas Wright (Europe) Ltd [1999] B.C.C. 163

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

Judgement for the case Wright v Atlas Wright (Europe) Ltd

Table Of Contents

  • Service contract was entered into between company and Claimant (the former managing director of company) appointing him consultant for life.

  • No written resolution was passed by shareholders approving service contract, as required by what is now s.188 in relation to directors’ service contracts of longer than certain period of years.

  • However all the company’s shareholders were informed of arrangement and consented to it.

Neuberger J

  • If person for whose benefit a procedural requirement exists waives the right, informal consent is valid.

    • I.e. anyone with a procedural right is competent to waive that right

  • However doubted whether it is possible to use informal procedure where calling of meeting is for benefit of:

    • Future members 

    • Creditors

Facts

  • Purpose of what is now s.188 is protection of company’s members.

  • Thus members, as those protected by section, can override any formal requirements in section.

  • Therefore service contract was binding on company.

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