Trace Your Case


Whether the proper purpose rule could have been made applicable to the imposition of restrictions on the voting rights of Eclairs and Glengary?
Whether the imposed restriction was improper?


‘Proper purpose rule’, applies to directors of English companies under s171(b) of the Companies Act 2006. This long-standing equitable rule, codified by the 2006 Act, requires that a director must only exercise powers for the purposes for which they were conferred.

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