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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 10103
Experience:  30 years as a practising solicitor.
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Iam am a member and share holder of city cabs edinburgh a black

Customer Question

Iam am a member and share holder of city cabs edinburgh a black cab taxi company serving the city the company has an elected council to run the company allmembers are share holders of equal status including the electedcouncil we service the main railway station of which there is permits given out by the station owners network rail they have decided to reduce city cabs no of permits so city cabs council decided to have a ballot to reduce the numbers ie so myself and many other members who have held permits for approx 15yrs go into this ballot along with others who have only had them for only weeks and some others for a few months surely as the longer term membes must have some kind of loyalty clause if this goes ahead it will cause a restriction of trade imposed on my self and fellow long term permit holders and is it not that last in first out comes into line as there is no good reason ive personaly been asked to draw the ballot friday at 10am 31st jan 2014 i intend to inform the council not to go ahead with it as it could to legal challenges from other members ie fata complete if it goes a head would be gratefull on your superior knowledge
Submitted: 2 years ago.
Category: Scots Law
Expert:  JGM replied 2 years ago.
Thank you for your question.

I think you are right in that there could be many legal challenges from established drivers. At the same time there is no legal basis for a last out first in policy either. This is something that should really be voted on by the whole membership rather than a decision being taken by the council, in my opinion.

I presume the organisation is a company limited by guarantee with each member having a vote. This may be something that a special general meeting has to be called so as to vote on the right way forward. The Article of Association (constitution) of the company would have to be read to give a more detailed answer.

I hope this helps. Please leave a positive response so that I am credited for my time.

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