Beattie v E and F Beattie Ltd [1938] Ch 708

Citation:Beattie v E and F Beattie Ltd [1938] Ch 708

Rule of thumb:Do shareholders have legal duties from the Articles of Association in a company? Yes, shareholders are bound by the company Articles of Association just as much as the directors are.

Judgment:

(articles as the contract which controls everyone). “Subject to the provisions of this Act, the memorandum and articles, when registered, bind the company and its members to the same extent as if they respectively had been signed and sealed by each member, and contained covenants on the part of each member to observe all the provisions of the memorandum and articles” said of this provision that it had been “the subject of considerable controversy in the past, and it may very well be that there will be considerable controversy about it in the future’, Lord Greene MR at 721

Warning: This is not professional legal advice. This is not professional legal education advice. Please obtain professional guidance before embarking on any legal course of action. This is just an interpretation of a Judgment by persons of legal insight & varying levels of legal specialism, experience & expertise. Please read the Judgment yourself and form your own interpretation of it with professional assistance.