Pender v Lushington

A member's right to vote is a personal right, which he can enforce in his own name, and members may vote in their own interests.

Citation
(1877) 6 Ch D 70
Court
Chancery Division
Year
1877
Subject
Company Law
Topic
The company's constitution and decision making

Facts

The articles of the Direct United States Cable Company limited the number of votes that a member could cast. Mr Pender transferred some of his shares to nominees, so that more votes could be cast in his interest. At a general meeting, the chairman, Mr Lushington, refused to accept the nominees' votes, so a resolution that Mr Pender supported was defeated. Mr Pender sued for an injunction.

Legal principle

Jessel MR held that Mr Pender was entitled to have the votes counted. He said that a member's vote is a right of property, which he may exercise in his own interests, and that he may vote in the way that he thinks best for himself, without any duty to vote in the interests of the company. The refusal to count the votes infringed Mr Pender's personal rights as a member, which he was entitled to enforce in his own name, so the rule in Foss v Harbottle did not prevent his claim.

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