Hopkins vs shannon transport systems ltd?

Answer 1

This is a leading Irish Company law case, on the duties of Company Promoters, and their fiduciary relationship with shareholders. In this case Hopkins (P) purchased a number of ferry vessels along with another (as a partnership) for use in establishing a business operating a ferry service across the River Shannon. The company (established as a limited company) was financed primarily through the sale of shares to the public, and grant aid received from the state. The then sold the vessels to the company at a profit. When this fact was discovered, the grant aid was rescinded and shareholders left the company. At this point P left the company and sued the company for his share of the profit. It was ruled that he had no entitlement to the profit, as he breached his fiduciary duty of disclosure, and the contract was therefore voidable.