State the rule in Foss V. Harbottle.

• This is the majority rule, which governs the enjoyment of corporate membership rights.
• The rule was laid down in Foss V. Harbottle (1873) where the plaintiffs purported to enforce a wrong done to the company. The acton was struck out on the ground that they had no Locus standi.
• The rule consists of three principles namely:
– Proper plaintiff principle.
– Internal management principle
– Irregularity principle.

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