Problem 1: Explain the rule in Foss v Harbottle?
Problem 2: Using cases to support what are the exceptions to the rule in Foss v Harbottle?
Problem 3: Under what circumstances can a shareholder bring a derivative action on behalf of a company? (Refer to one case to support your answer)
Problem 4: How does the Foss v Harbottle Rule protect Companies from unnecessary litigation?
Problem 5: Lydia, a minority shareholder in a company discovers that the 3 directors of ABC company negotiated a contract for the supply of heavy machinery to Company X. They later took the contract for themselves in their personal capacity. She decides to bring a representative action against the directors, seeking damages for the loss of potential income to the company. Identify two implications of Lydia's action and state whether it is consistent with the rule in Foss v Harbottle.