11/8/2011 Edward v Halliwell [1950]2 AIl ER1064at1067 Still applies the proper plaintiff rule Jenkins L:the rule in Foss v Harbottle is no more than 2 points Jenkins L:there are 3 exceptions to the rule in Foss v Harbottle The difficult one:"fraud on minority"exception to the Foss v Harbottle rule Don't be misled by the label "fraud"here:what's the fraud? ·2 criteria 2 significant flaws in this Foss v Harbottle approach 15 Fraud on the company Cook v Deeks [1916]1 AC 554 Toronto Construction Cook Deeks Deeks Hinds Dominion Construction 16 811/8/2011 8 15 Edward v Halliwell [1950] 2 All ER 1064 at 1067 • Still applies the proper plaintiff rule • Jenkins LJ: the rule in Foss v Harbottle is no more than 2 points. • Jenkins LJ: there are 3 exceptions to the rule in Foss v Harbottle. • The difficult one: “fraud on minority” exception to the Foss v Harbottle rule • Don’t be misled by the label “fraud” here: what’s the fraud? • 2 criteria • 2 significant flaws in this Foss v Harbottle approach 16 Fraud on the company • Cook v Deeks [1916] 1 AC 554 Toronto Construction Cook Deeks Deeks Hinds Dominion Construction