LEXLAW Solicitors & Barristers
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.
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.
The Court of Appeal case of Re Compound Photonics Group Ltd; Faulkner v Vollin Holdings Ltd [2022] EWCA Civ 1371, in the context of an unfair prejudice petition filed according to Section.994 of the Companies Act of 2006, the Court of Appeal has clarified the meaning of the contractual responsibility of good faith.