The rule in Foss v Harbottle (1843) established the principle that only a company can sue for wrongs done to it. This famous case defined the proper plaintiff rule, shaping modern company law and shareholder rights.
Principle of Majority Rule: The case established the principle that the majority of shareholders in a company have the right to decide how the company should be managed, effectively preventing minority shareholders from suing for wrongs done to the company.
