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Discuss the law propounded in the case of Foss vs. Herbotyl.

are elected who manage the affairs of the company on behalf of the shareholders and in their interest, but in important cases the consent of the shareholders is also taken. Normally this consent is taken in the annual general meeting of the shareholders, but in exceptional circumstances extraordinary general meeting can also be called. According to the provisions of the Companies Act, in order to obtain the consent of the shareholders, a general resolution in some cases and a special resolution in some more important cases has to be passed, only then the consent is deemed to have been given. For the passing of a general resolution, it is necessary to have at least 51% (more than half) of the members present in its favor, whereas for passing a special resolution, at least 75% (three-fourths) of the members present must have agreed. is, if the Quorum is present.

It is clear that the principle of majority is applicable for decision in company matters. In such a situation, the minority shareholders cannot get their point or desired policy made even if they want.

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