Category: Business and Property Courts

Section 994 Petitions, Companies Act 2016

Quick Guide: s.994 Companies Act Unfair Prejudice Petitions

English law Unfair Prejudice Petitions offer a remedy for minority shareholders facing oppression by the majority within a company. Where the prospect of winding-up proves undesirable, section 994(1) of the Companies Act 2006 provides an alternative avenue for seeking redress. At LEXLAW, our expert company law team specialises in navigating the complexities of shareholder disputes and unfair prejudice claims.

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Court of Appeal Decides s.994 Petitions Subject to Statutory Limitation Period

In a significant shift, the Court of Appeal determined that unfair prejudice petitions under section 994 of the Companies Act 2006 have a 12-year statutory limitation period, reversing previous beliefs and affecting future legal approaches to such claims. This ruling, THG Plc v Zedra Trust Company (Jersey) Ltd [2024] EWCA Civ 158, changes the legal landscape for minority shareholder disputes, requiring a reevaluation of existing strategies and the potential for earlier claims.

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Court Dismisses Force Majeure & Trade Sanctions Control Defences

The High Court, in its decision on Litasco SA v Der Mond Oil and Gas Africa SA & Anor [2023] EWHC 2866 (Comm), clarified the application of force majeure and the “ownership and control” test under UK sanctions law. It emphasized that significant difficulty, nearly impossible to overcome, is necessary to invoke force majeure for debt obligations. The ruling further established stringent criteria for proving “control” in relation to sanctioned entities, highlighting the necessity for actual influence over business decisions, rather than theoretical possibilities, to satisfy this condition. This decision provides a clearer framework for businesses handling contracts under these terms.

Court of Appeal UK. Civil Litigation

Limitation Period for Payment of Services

In debt claims for the provision of services, the Court of Appeal has determined that time starts to run for limitation purposes from the date the work was done, rather than from the contractually agreed deadline for payment: Consulting Concepts International Inc v Consumer Protection Association (Saudi Arabia) [2022] EWCA Civ 1699).

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Beware of Limitation Periods: Supreme Court clarifies time periods for litigation claims

In a midnight deadline case, there is a complete undivided day following the expiry of the deadline, which should be included when calculating the limitation period. It is, therefore, crucial that limitation issues are considered at the outset of any potential claims.

Court refuses to amend developers’ £1.5 million cost budget

The High Court has refused permission for two property developers to amend their initial agreed cost budget of approximately £1.5 million after an attempt to request almost double the sums allowed.

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Witness Statements: New Rules Upcoming in the Business and Property Courts

Key changes include a new draft Practice Direction 57AC; the need to identify the documents which the witness has been referred to for the purpose of providing the evidence and endorsement by a certificate of compliance signed by a lawyer.