Minority Shareholder ProtectionJanuary 25, 2012 | Legal
Are you a Director and minority shareholder in a company? Have you been excluded or have felt you cannot take any more and have walked out without resigning? Are you not now receiving any dividend?
Perhaps your authority has been deliberately undermined for example staff have been told to ignore your instructions by other Directors, or customers have been told not to deal with you.
You might suspect your co-Directors or acting unlawfully and behind your back.
What can you do?
We recently had a case with all of the above ingredients and we advised our client that he may be able to present an Unfair Prejudice Petition under Section 994 of the Companies Act 2006.
You have to show grounds that the affairs of the company are being conducted or have been conducted in a manner which is unfairly prejudicial to the interests of members. The prejudice must be unfair.
The Petition can be presented to the High Court or a County Court with chancery jurisdiction.
Clearly this is a complex area and every case will have to be examined carefully before embarking on such a course of action but we can certainly consider the options and advise.Back to news >