9911796707
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Issues:
1. Directors' refusal to register petitioners as members 2. Summary dismissal of petitioners by the company 3. Directors' refusal to provide balance sheet copies 4. Allegations regarding directors' salaries 5. Request for cross-examination of deponent directors 6. Allegations related to dividends affecting petitioners' rights Directors' Refusal to Register Petitioners as Members: The judgment emphasized that the mere fact that directors refused to register petitioners as members does not automatically warrant winding up the company. The court highlighted that there was no evidence to suggest the directors' discretion was improperly exercised. It was stated that assuming such discretion was improperly used would not justify winding up the company. The judge clarified that if the directors' discretion was indeed misused, petitioners could seek appropriate relief through other legal avenues like rectification motions or actions in the Chancery Division. Summary Dismissal of Petitioners: Regarding the summary dismissal of petitioners by the company, the judgment underscored that this action alone did not provide grounds for winding up the company. The judge noted that there was no obligation for the company to continue employing the petitioners. Any claims of improper dismissal were deemed matters for redress in the appropriate court, rather than justifying the winding up of the company. Directors' Refusal to Provide Balance Sheet Copies: The judgment addressed the allegation that directors refused to supply the petitioners with copies of the balance sheet. It was clarified that the directors were not obligated to provide the balance sheet as per contractual rights outlined in the articles. The judge highlighted that the absence of balance sheet supply, without further evidence of impropriety, did not constitute a valid reason for winding up the company. Allegations Regarding Directors' Salaries: The judgment discussed allegations related to the salaries received by the directors. The judge noted that while the directors had discretion over their salaries, there was no evidence to suggest that the salaries or bonuses paid were excessive or made in bad faith. The court emphasized that without proof of impropriety, insinuations of ill faith could not be entertained as grounds for winding up the company. Request for Cross-Examination of Deponent Directors: The judgment detailed a request for cross-examination of the deponent directors. The judge decided to proceed with the petition without delaying for cross-examination, as the petition was deemed misconceived. The court limited the scope of examination to the allegations in the petition, preventing counsel from delving into matters not directly relevant to the substantive claims made in the petition. Allegations Related to Dividends Affecting Petitioners' Rights: Lastly, the judgment addressed allegations concerning dividends potentially impacting the petitioners' rights under the articles. The judge noted a reduction in dividends but highlighted the lack of evidence showing that the reduction unjustly infringed on the petitioners' rights. Ultimately, the court concluded that the petition was misconceived and dismissed it with costs, stating that the circumstances did not warrant the winding up of the company.
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