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majority rule, minority rights

Foss v Harbottle and Majority Rule. This process allows for citizens to maintain individual rights while following the direction of the majority. This rule is modified in certain cases. It follows that the majority of the members enjoy the supreme authority to exercise the powers of the company and generally to control its affairs and the minority shareholders have to concede to the majority decision. \"If the measures which have been pursued are approved by the majority, it is the duty of the minority to acquiesce and conform.\" --Thomas Jefferson to William Duane, 1811. MAJORITY RULE / MINORITY RIGHTS. 145) p. 422, [17] Hodson v. National and Local Government Officer Association (1972) WLR 130, Your email address will not be published. The structure of democracy is as such, where the majority has the supremacy. 145) p. 422, [16] Associated Registered Engineering Contractors Ltd and others v. Yalaju-Amaye (1990) 4 NWLR (pt. https://phdessay.com/majority-rule-minority-rights/, The difference between incidence and prevalence data. The court will not interfere in the internal affairs of a company at the instance of the minority if the irregularities complained of could be legally done or rectified by the majority. Because of the national scare of the spread of any type of Communism, the government was forced to take extreme measures to stop any part of it from spreading. Majority-rule does not necessarily protect minority rights. Majority-minority protections can be a delicate balancing act for lawmakers. [16], Where a company meeting cannot be called in time to be of practical effect to redress a wrong to the company a shareholder can sue. These are attributed to individuals in a society out of respect for … A minority shareholder is a person in a company who does not enjoy much power in the management of the company and their interests are disregarded. Throughout history, there has been an understanding between the government of state and its constituents. Get Your Custom Essay Scholars (Strom 1990) There was, for instance, the Red Scare of 1919. “Minority rule” on this scale is unprecedented in recent American history, and many liberals are either concerned or angry. One reason for this was the Berlin Airlift where Russia sectioned off their part of the conquered Berlin, Germany and would not let any other allies in. Of course, someday, you might be in the minority.You might think about the tyranny of the majority. Abraham G. Ghiorgis Pasted below is an article from the “Democracy Web” that succinctly elucidates the principles of majority rule and the respect of minority rights in a liberal democratic society. These workers belonged to the American Railway Union. Even in the early days of the roughly adhesive Babylonian governments, the people strove for organization and protection of their property. Now persons who had once been a communist, had been associated with communists, or just were radical, were subjected to intense investigations both private and public. 00 out of 1. Majority rule presented a conundrum to the founders of America precisely because although majority rule was needed in order for the government to function and the principle of minority rule interfered with democracy, the majority in power could oppress a minority as … … They felt that you were owned, so to speak, by your boss. The monarch’s constitutionally defined duties still include nominating the government, signing laws into effect, and chairing the Council of State, but today these are considered ceremonial and not substantive. get custom paper. For some this can mean being treated no differently from others; for others, that minority Statistical data can enhance insights by establishing the relationship of events or factors to a population. The rule states that “the proper plaintiff in an action in respect of a wrong done to the company or association of persons is prima facie the company or association itself. Majority rule with respect to minority rights is vital to a democratic government. The majority rule of decision making, quite often than not overlooks the views of minority shareholders. [14] “any act which may amount to an infraction of fair dealing; or abuse of confidence or unconsciously conduct, or abuse of power as between a trustee and his shareholders in the management of a company”. Critics of the Constitution argued that the proposed federal government was too large and would be unresponsive to the people. The government displayed its power against its people. 189. It also allows for the citizens to make changes to the laws as society, the majorities, and the minorities change. He countered that it was exactly the great number of factions and diversity that would avoid tyranny. Historical Development of the Concept of Corporate Law, Introduction to Company Law: Meaning, Nature and Characteristics, Appeals | Part VII of Civil Procedure Code, 1908, A Comprehensive Study of Software Patents in Today’s World, Working of Patents and Compulsory License, Interview: Yashvardhan Rana | Intellectual Property Lawyer & Editor – The Trademark Reporter at INTA, Career Opportunities in Armed Forces for Law Students (JAG) Branch, Shareholders have the right to participate in decisions concerning fundamental corporate changes, Disclosure of disproportionate voting rights of certain shareholders to obtain a degree of control, Markets for corporate control should be allowed to function. This was the first time that the government had to get a federal court injunction to make the workers go back to work. Before that, according to Hobbies, the people of the world existed in what he called a "state of nature.". Social Contract Theory is a philosophy, which states that political and moral obligations of a person are rendered to him, upon an agreement between the ruler and the society. Miller, N. 1980. Before the Russian Revolution, the citizens of the United States were able to believe in any political system they wanted. But it’ll be too late. This law required Communists and Communist Organizations to register with the US government. There were other incidents that have also displayed these tensions of government choosing between majority rule and minority rights. They may have been fed up with the plundering of their land. [13], This appears to be the most important exception. The cold war was a fighting war. But the detailed arrangements are complex, and many issues need to be considered, not least the nature of minority rights. This caused much strife between the workers and the government. majority rule with minority rights is the basis of American political culture and is built into the very structures of government. According to section 47 of the companies act, 2013, holding any equity shares shall have a right to vote in respect of such capital on every resolution placed before the company. Merriam-Webster dictionary defines it as “the total complex of relations between people living in society.” This phrase is the root of all politics and all governments. Abolished slavery in the United States. 00. Whether. Accordingly, the rule does not prevent an individual member from suing if the irregular act in respect of which he is suing is one which could validly be done or sanctioned not by a simple majority of the members of the association, but only by some special majority[10] This exception also covers a breach of any particular procedure laid down in articles or constitution or rules of the organization. This move worked and ended the strike. With this a company becomes a legal entity of it's own which is capable of suing and being Retrieved from https://phdessay.com/majority-rule-minority-rights/. The idea behind rights is that there are certain interests that we consider ‘overriding demands’. They were not just held to taking capitalism as the "way to go." PoliticalOrder: Nomos XXXVIII. (2017, Mar 14). 406, Alexander v. Automatic Telephone co. [8] N. V. Paaranjabe Textbook on Company Law, 10th Edition ( India: Central Law Agency, 1995) at p. 263, [9] N. V. Paaranjabe Textbook on Company Law, 10th Edition ( India: Central Law Agency, 1995) at p. 361, [10] G. A. Olawoyin Status and Duties of Company Directors( Ille-Ife: University of Ife Press 1977) p. 268, [11] Quin and Axtens Ltd v. Salmon (1950) 2 All ER 1064, [12] G. A. Olawoyin Status and Duties of Company Directors( Ille-Ife: University of Ife Press 1977) p. 266. Chapter 01 Quiz This state of nature existed before the population of an area realized the need for a structure and a steady way of life. [7], In the first place, the powers of the majority of members are subject to the provisions of the company’s memorandum or articles. One such group was a group that came to be known as the Wobbles. This problem lies not only in India but across the globe. Is it time now for a new social contract. STUDY. This was the start of the cold war. The restrictive character of the Rule in Foss v. Harbottle has led to the creation of statutory remedies for minority shareholders. This is a clear example of how tensions grew out of the governments need to chose between majority rule, (in this case the common citizen), and minority rights, (in this case the Wobblies). (1843) 2 Hare 461, [6] Gower: The Principles of Modern Company law 4th Edition (Sweet & Maxwell) p. 645, Heytin v. Dupont (1964). In the corporate world, all democratic decisions and management of a company are made with the majority rule which is deemed to be fair and justified. These poor people were not given a chance to live private lives and practice what they believed to be true. As I had hinted in my earlier discourse, many of my recommendations deal with eliminating government’s intervention in. Minority shareholders derive their rights chiefly from the company’s articles of association and the Companies Act 2006. The case against majority-rule. We use cookies to give you the best experience possible. With this action, the people put what they thought to be an equal balance of power into the government's hands. custom paper from our expert writers, Majority rule, minority rights. [13] Abubakar v. Smith (1973) 6 S.C.R 31 p. 44. Majority rule is limited in order to protect minority rights because if it were unchecked it probably would be used to oppress persons holding unpopular views. That’s majority rule for you, without much concern for liberty. [5] According to this principle, the courts will not, interfere at the instance of the shareholders, in the management of a company it’s direct so long as they are acting within the powers conferred on them by the articles of the company. No matter whose views are correct and just, a person's views should not be suppressed and condemned by many. In the corporate world, also the rule and decisions of the majority seem to be fair and justifiable. Unlimited majority rule in a democracy is potentially just as despotic as the unchecked rule of an autocrat or an elitist minority political party. Therefore if the majority purports to do any such act by passing the ordinary resolution as opposed to the special resolution required by the law, any member or members can bring an action to restrain the majority[9]. [8], Generally, the decisions on internal affairs of the company are taken by passing an ordinary resolution at the general meeting. This, however, may lead to a possibility that the members having majority vote may tend to be oppressive towards the minority shareholders misusing their majority strength. The four established exceptions to the rule at common law[6] and the two exceptions in decided cases. Shareholders should consider the costs and benefits of exercising their voting rights. (Miller 1980) It called for deportation of Communist immigrants and prohibited the immigration of anyone who had belonged to a Communist Party. This site uses Akismet to reduce spam. That person should also not have to go through the persecution and embarrassment of this shunning. The government displayed its power against its people. 1. declared that all persons born in the US were citizenship, that all citizens were entilted to equal rights and their rights … If you are interested in the title for your course we can consider offering an examination copy. [12] The rule would not apply to individual members who can establish that their personal rights, as distinct from those of the union. Majority Rule, Minority Rights Democracy argues that the majority of people will be right more often then they will be wrong, also that majority will also be right more often than will anyone or small group. These will include general shareholder rights such as ‘to receive notice of any general meeting and to vote at the meeting’. Courts will not interfere with the management of a company by its Board of Directors so long as they are acting within the powers conferred on them under the articles of the company.[1]. At common law, fraud would include dishonesty and deceit. A company, therefore, cannot legally authorized or ratify any act which being outside the ambit of the memorandum, is ultra vires the company – such acts being illegal, there can be no question of the transaction being confirmed by any majority and a shareholder is entitled to bring an action against the company and its officers in respect of such matters. Unlimited majority rule in a democracy is potentially just as despotic as the unchecked rule of an autocrat or an elitist minority political party. Majority Rule and Minority Rights: Balance needed for Corporate Democracy Author: Narendra Singh[1] Maharashtra National Law University, Nagpur ISSN: 2582-3655 Abstract The Corporate world is witnessing the legal battle of shareholders for a long time. [11], the rule in Foss v. Harbottle is concerned with corporate rights-that is, the rule applies only to cases arising as a result of the invasion of the rights of a company, in other words, any matter relied upon by a defendant as constituting a cause of action to which the rule applies must be one which properly belongs to the general body of members of the company in question as opposed to a cause of action which some individual member could assert in his own right. [4] North-West Transportation Co. v. Beatty (1887) L.R. The principle that the will of the majority should prevail over the will of the minority in matters of internal administration of the company was founded in the case of Foss v. Harbottle which is today known as the rule in Foss v. New York: New York University Press, Strom, K. 1990. It had to choose between the rights of the union to strike and the need of the population to get its mail. Written by James Madison, this essay defended the form of republican government proposed by the Constitution. One such incident being McCarthyism of the 1950's. Minority rights. Minority Government and Majority Rule. But there are certain acts which can be done only by passing special resolution. Don’t miss a chance to chat with experts. You can get your The union decided to refuse to move trains with the Pullman Cars thus shutting down virtually all railways in and out of Chicago. John Locke proposed that there has always been a need for a "social contract"-that is an understanding between the government and the people for the sole reason of protection and organization. Majority rule had been limited in order to ensure that the majority will not oppress the minority therefore protecting the rights of the minority while the majority rules. Gave women the right to vote. can use them for free to gain inspiration and new creative ideas for their writing assignments. To overcome this problem faced by the minority, the Companies Act, 2013 came up with the solution to tackle the problems which are usually faced by the minority shareholders. The majority should rule while guaranteeing the rights of minorities 24th Amendment Amendment to the U.S. Constitution (1964) eliminated the poll tax as a prerequisite to vote in national elections. 12 A.C. 589. This. The workers ignored the injunction thus prompting President Cleveland to send US troops to quell the strike. Majority rule is a decision-making system often used in governments for choosing between two or more options. PLAY. In response, Madison explored majority rule v. minority rights in this essay. [14] G. A. Olawoyin Status and Duties of Company Directors( Ille-Ife: University of Ife Press 1977) p. 11, [15] Associated Registered Engineering Contractors Ltd and others v. Yalaju-Amaye (1990) 4 NWLR (pt. [3] The resolution of a majority of shareholders passed at a duly convened and held general meeting, upon any question with which the company is legally competent to deal, is binding upon the minority and consequently upon the company.[4]. Majority rule; minority rights. Introduction – Majority Powers and Minority Rights. Majority Rule vs. It is important in any democracy that the principal of majority rule with respect to minority rights be consistently upheld so that the system can work as efficiently as it is designed to. Khan Academy is a 501(c)(3) nonprofit organization. “Majority Rule and Minority Interests.” In Shapiro, I. and Hardin, R. eds. Balancing minority and majority rights Our mission is to provide a free, world-class education to anyone, anywhere. This group was a band of young, radical individuals who were basically fed up with American Federation of Labor. Need to preserve right of the majority to decide: The principle in. According to Timothy Manning, Deputy Administrator for Protection and National Preparedness at the Department of Homeland Security's (DHS) Federal Emergency Management Agency (FEMA). However, the value and validity of these insights depends on the researchers’ skill in. Member’s right to vote is recognized as the right of property and the shareholder may exercise it as he thinks fit according to his interest and choice. When the Russian Revolution occurred in 1917, the United States passed a string of laws, both on the federal level and state level that prevented these Communist beliefs from seeping any further into the common American psyche. 13th Amendment. “A New Solution Set for Tournaments and Majority Voting: Further Graph-Theoretical Approaches to the Theory of Voting.” American Journal of Political Science 24.1:68-96, Miller, N. 1996. This paper will attempt to show how this feeling of superiority that governments have purveyed through the history of the United States. The minority, therefore, must have the right to seek to become the majority and possess all the rights necessary to compete fairly in elections — speech, assembly, association, petition — since otherwise there would be perpetual rule and the majority would become a dictatorship. Lock explains that the constituency gave up the rights to rape, murder, and steal in order for protection of property. This move worked and ended the strike. [17], [1]  O.Orojo Company Law and Practice in Nigeria 5ed (London: Lexis Nexis 2002) p. 203, [2] N. V. Paaranjabe Textbook on Company Law, 10th Edition ( India: Central Law Agency, 1995) at p. 389, [3] Edwards v. Halliwell, (1950) 2 All.E.R.1064. In corporate world, all democratic decisions and management of a company are made with the majority rule which is deemed to be fair and justified. Question 1 14th Amendment. PhDessay is an educational resource where over 1,000,000 free essays are collected. The most impressive thing about this is the permission to go to the court for prevention of oppression or mismanagement. [15] To succeed, plaintiff must proof (a) fraud on the minority and (b) that the wrongdoers are in control of the company and this prevents the company itself from bringing action in its own name. Flag question Question text Many insects do not see into the red color-range and as a result, many. Majority Rule, Minority Rights. Senator Joseph McCarthy conducted what he dubbed the Red Hunt which ultimately failed due to his lack of evidence and his butchering of the truth. Don't use plagiarized sources. This is because “the majority in control may constitute an unruly horse if not checked [7] ” These instances have been codified in Section 300 CAMA. This principle, with that of acquiescence in the will of the majority, will preserve us free and prosperous as long as they are sacredly observed.\" --Thomas Jefferson to John F. Watson, 1814. In conclusion, it has been shown, throughout the history of the United States, that the majority of many take precedence of the minority of the few. Let Professional Writer Help You, 6000 Fairview Road, SouthPark Towers, Suite 1200, Charlotte, NC 28210, USA. What is politics? Majority rule is limited in order to protect minority rights, because if it were unchecked it probably would be used to oppress persons holding unpopular views. Majority rule with minority rights is one of five limits on government featured in the KTB Prep American Government and Civics series designed to acquaint users with the origins, concepts, organizations, and policies of the United States government and political system. Just as no self-appointed group has the right to oppress others, so no majority, even in a democracy, should take away the basic rights and freedoms of a minority group or individual. Many states opted to adopt laws that made the Wobblies illegal and forced it to go underground. In the corporate world, all democratic decisions and management of a company are made with the majority rule which is deemed to be fair and justified. [5] Foss v. Harbottle, 67 E.R. Looking for an examination copy? on. It examines literature which has concentrated on the theoretical and empirical attempts to explain the changes that have occurred in the minority rights in legislatures over time. Majority Rule, Minority Rights The Netherlands remains a constitutional monarchy. In 1894, there was a strike of Pullman Palace car factory workers outside of Chicago. Many were fired from their jobs due to this. Majority power has great importance in the working of a company and the “Courts will not generally intervene at the instance of the shareholder in matters of internal administration. majority rule definition: 1. the system of giving the largest group in a particular place or area the power to make decisions…. Cambridge: Cambridge University Press, Remember. In 1950, under growing public pressure, the United States passed the Internal Security Act over President Truman's veto. Many of the Wobblies were consequently arrested for nonsensical reasons. Minority protection is where the law allows the minority holders to enforce certain rights in certain instances which can be termed “exceptions to the rule in Foss V Harbottle”. There are many suggestions for reform in government’s relationship to the economy. [7]  Hodgson v. Nako (1972) 1 WLR 130, Daniels v. Daniels (1970) Ch. Your email address will not be published. Therefore, where the act or the articles require a special resolution for any purpose, a 3/4th majority is necessary and a simple majority is not enough. 19th Amendment. Democracy is designed to order human relations. From the times where such philosophers as Thomas Hobbes and John Locke put forth their respective theories of a state of nature and social contract, mankind has been enthralled with the separation of government and the population it controlled. (Miller 1996) The reason that the government needed the injunction was because the Pullman workers were responsible for mail delivery. Those who survived it are heroes. Companies Law – Majority Rule and Minority Rights. It had to choose between the rights of the union to strike and the need of the population to get its mail. Harbottle. Groups would be forced to negotiate and compromise among themselves, arriving at solutions … This is just a sample. Majority rule is a means for organizing government and deciding public issues; it is not another road to oppression. When certain rights are denied, the democracy becomes illiberal and unable to accurately represent and protect all of the citizens it is responsible for. Through the readings of Karl Marx, many were led to believe that Communism was the correct route for social and economic prosperity. Learn how your comment data is processed. By continuing we’ll assume you’re on board with our cookie policy, Your Deadline is Too Short? A special resolution requires a majority of 3/4th of those votes at the meeting. Majority and minority define who has the power to rule. Required fields are marked *. In the mid 1940's, after the end of WWII, the United States and the other democracies of the world began moving apart from the new Russia. All of these actions taken by the government evoked not only its dislike for Communism but also how its ear was always open and adjusted for the majority. Majority rule and Minority rights: Does companies Act 2013 balance the equation by admin April 27, 2020 October 30, 2020 In corporate world, all democratic choices and control of a organization are made with the majority rule that is deemed to be truthful and justified. The aim must be to strike a balance between effective control of the company and the interests of the small individual shareholders. Since the September 2001 terrorist attacks, significant. [2] Because of this reason, it has been said that “the protection of the minority shareholders within the domain of corporate activity constitutes one of the most difficult problems facing modern company law. The government, acting as a whole body, has seemed to, throughout time, take advantage of the people that it represented. Majority rule, minority rights just from $13,9 / page. He had gone too far and was reprimanded by the Congress for actions that were not becoming of a senator. ME 13:51 \"Every man's reason [is] his own rightful umpire. This article reviews literature on majority rule and minority rights. To register your interest please contact collegesales@cambridge.org providing details of the course you are teaching. ... Majority-minority tensions exist in virtually every country, as there are hardly any nations today without significant minority populations, including of course in the non-western world. Learn more. Correct Mark 1. Because a majority can win a vote under majority rule, it has been commonly argued that majority rule can lead to a tyranny of the majority. The minority shareholders are protected under: The hardship and injustice that arise from the strict application of the rule on minority shareholders, various exceptions were recognized under which the rule may be excluded in its application. It was a war of the proverbial "cold shoulder.". One of the most interesting thing about incorporation of a company, is the legal personality clothing that incorporation clothes an organization with. There were other incidents that portrayed these tensions.

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