Khan v Leisure Enterprises [1997] JLR 313 (18 December 1997)

Khan v Leisure Enterprises [1997] JLR 313 (18 December 1997)

Minority shareholders may bring a derivative action only if the defendants control the company and only for relief available to the company; acts authorized by majority shareholders are not actionable unless fraudulent or ultra vires.

Citation
[1997] JLR 313
Parties
Applicant: Khan; Respondent: Leisure Enterprises
Jurisdiction
Jersey
Judgment Date
18 December 1997
Procedural Posture
Derivative Action / Judgment
Outcome
Claim dismissed
Legal Topics
Derivative Actions, Corporate Wrongs, Minority Shareholder Rights
Company Law Derivative Actions Corporate Wrongs Minority Shareholder Rights

Case Brief

Summary, issues, holding and outcome

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Parties

Khan

Applicant

Leisure Enterprises

Respondent

Procedural Posture

Derivative Action / Judgment

Legal Issues

  1. 1 Whether minority shareholders can bring an action to redress a corporate wrong
  2. 2 Applicability of the rule in Foss v. Harbottle

Ratio Decidendi

Minority shareholders may bring a derivative action only if the defendants control the company and only for relief available to the company; acts authorized by majority shareholders are not actionable unless fraudulent or ultra vires.

Court Disposition

Claim dismissed