Foss v. Harbottle [1843]
(1843) 2 Hare 461, 67 ER 189 · Court of Chancery · England and Wales
Summary
Classic derivative action and shareholder litigation case.
Facts
Shareholders sued directors over alleged misapplication of company property.
Issue
Who is the proper plaintiff for wrongs done to a company?
Held
The company is generally the proper plaintiff.
Ratio Decidendi
Wrongs to a company are ordinarily enforced by the company, subject to exceptions.
Reasoning
Corporate personality and majority rule limit individual shareholder suits.
Significance
Classic derivative action and shareholder litigation case.
Related Cases
No related cases listed.
Exam Tips
Review the ratio and reasoning before applying this case in problem questions.