Shuttleworth v Cox Brothers & Co Ltd [1927] 2 KB 9

Facts: An amendment allowed the board to remove a permanent director, targeting Shuttleworth, who was accused of fraud.

Issue: Was the alteration valid if believed to be in the company's best interests?

Held: The alteration was valid. It was made bona fide for the company’s interest, even if it affected an individual director.

Key Judicial Statement: Scrutton LJ observed, “It is not the business of the Court to manage the affairs of the company; it is for the shareholders and directors, provided there are reasonable grounds for their decision.”

💡 Leveluplaw: Courts will not interfere with shareholders' decisions as long as they are made in good faith with reasonable grounds.