The Basis Of The Contract Between The Company And Its Members Case Study - 2

The Basis Of The Contract Between The Company And Its Members - Case Study Example Enforcement of contract arises when one of the parties commits a breach of terms and conditions of the contract. Section 14 of the Company Act 2006 (CA) makes the articles of association, on registration of the company, to become a contract between the company and members and it has been observed by Stein LJ in Bratton Seymour service Co Ltd v Oxborough1that â€Å"it is a statutory contract of special nature with distinctive features†2 Within the perspective of company law, it is of special nature because the terms of contract can be varied by special resolution and its enforcement by the members is limited to a certain extent and no outsider has any rights. And section 33(1) of the CA provides for a number of ways to be different from a normal contract. The provisions of the constitution of a company bind the company and its members in a manner as if there are covenants on the part of the company and on the part of each of its members to comply with those provisions. This position emerges once the company is registered as set in section 33 (1) of the CA. It, therefore, follows that prov isions in the articles are enforceable by the company against its members, by a member against another member, and by a members against the company limited to their membership rights of attending meetings, voting, eligibility for dividend and to assert the rights to ensure that the company is managed as per the constitution. Usually, there will be a condition in the articles to provide for referring by the company to arbitration disputes between the company and members. A company can enforce compliance of this obligation. This is supported by the decision in Hickman v Kent or Romney Marsh Sheep-Breeders’ Association where the court upheld the relevant clause in the articles for arbitration.

Where Did Americans Spend Their Money Essay Example | Topics and Well Written Essays - 250 words - 1

Where Did Americans Spend Their Money - Essay Example According to the research findings, it can, therefore, be said that in his findings, Sparshott reveals that restaurants and retailers witnessed a sales rise of 1.2 percent in June compared to the previous month. The big vehicle sales also helped boost the level of economic growth. Dealers of motor vehicles and spare parts indicated that they witnessed a 2 percent rise in June compared to May. Even with the elimination of auto sales, gains were broad-based, as they still reflected a 1 percent growth. Furthermore, the cheap prices of gasoline have provided Americans with a windfall, although in recent months they are more motivated to saving rather than spending. In May, however, gasoline stations witnessed their ultimate leap since 2012, although Americans ignored the move. They directed their earnings to gardening and building materials, non-store retailers, and clothing stores. Thus, based on the growth in sales in the recent months, the researcher has realized that Sparshott has ef fectively shown the way the American economy is shifting from the harsh weather witnessed during the first quarter of the year. This is because the present figures are revealing strong growth in payroll real income. This way, the author hopes the country will be able to reverse the contraction it witnessed during the first quarter of 2015.