Question

in corporate law what are the remedies avalable for sharholder if directors not agree with eachother?

Answer 1

In earlier years shareholders had no right against directors for any loss they suffered because of breach of duty or disagreement among directors as director owes their duties direct to the company

However , presently Law allows shareholders to take steps against Directors in case of any dispute

Here are the remedies available to the Shareholders when there is disagreement or dispute between the directors and they are dissatisfied with directors act.

Shareholders can bring a claim against directors in the name of company. Claim is initiated & run by shareholders but in the name of company to recover any loss beared by them because of dispute among directors

Claim can be filed on the grounds of:

• Breach of Duties described by law   and/or
• Negligence and any other failure that have been committed

Regardless of Circumstances , Shareholders always have a right to remove any director by passing ordinary resolution & this right cannot be taken away by company in any way.

Further , Shareholders also have rectification right . Even where director’s breach is clear shareholders can rectify it after the event by passing ordinary resolution .

Thus, Shareholders have above remedies against Directors