The decision of the Royal Court (Samedi division) in the case In the matter of Galasys plc [2016] JRC188 was published yesterday. The decison is noteworthy because of the discussion it contains regarding the shareholders' reserve power of management. The discussion was, strictly speaking, obiter but the decision appears to be the first appellate level Jersey authority to have considered these matters. As for the scope of the reserve power, the court inclined towards the view that the power extended to the taking of management of decisions and went, therefore, beyond the exercise of a power to appoint or replace directors to resolve deadlock or the inability to act.
Tuesday, 25 October 2016
Jersey: the reserve power of company shareholders
The decision of the Royal Court (Samedi division) in the case In the matter of Galasys plc [2016] JRC188 was published yesterday. The decison is noteworthy because of the discussion it contains regarding the shareholders' reserve power of management. The discussion was, strictly speaking, obiter but the decision appears to be the first appellate level Jersey authority to have considered these matters. As for the scope of the reserve power, the court inclined towards the view that the power extended to the taking of management of decisions and went, therefore, beyond the exercise of a power to appoint or replace directors to resolve deadlock or the inability to act.
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