Question

Brown vs british abrasive wheel company case in business law explain

Answer 1

British Abrasive Wheel Co needed to raise furthercapital. The 98% majority were willing to provide this capital if they could buy up the 2% minority. Having failed to effect this buying agreement, the 98% purposed to change thearticles of associationto give them the power to purchase the shares of the minority. The proposed article provided for thecompulsory purchaseof the minority’s shares on certain terms. However, the majority were prepared to insert a provision regarding price which stated that the minority would get a price which the court thought was fair.