What does a Bushell and Faith clause pertain to?

A Bushell and Faith clause pertains specifically to the allocation of votes during the removal of directors. This type of clause is often included in a company’s articles of association and allows for certain shareholders, typically the founders or key stakeholders, to retain their voting rights even in circumstances where other shareholders are voting to remove a director. This means that the clause provides a level of protection for critical management figures, ensuring that they cannot be easily ousted by a majority vote, which could otherwise disrupt the governance and stability of the company.

This clause is significant in corporate governance as it addresses the balance of power within the management and ownership structure, safeguarding the interests of significant stakeholders while simultaneously allowing for corporate control to remain within a defined group. In contrast, the other options focus on aspects of partnerships and joint ventures, which do not directly relate to the corporate governance context in which the Bushell and Faith clause operates.