Unfair Prejudicial Claim

Question 1

What is an unfair prejudicial claim?

Answer 1

Where a minority shareholder can petition against a majority shareholder in order to redress unfairly prejudicial conduct affecting them personally as a shareholder. A personal remedy

Question 2

In what way could Emily make an unfair prejudicial claim?

Answer 2

‘Emily considered her opinions were being ignored, leading to growing tension among the shareholders. ‘

Question 3

What is the reason Emily’s claim could stand?

Answer 3

Company’s affairs are being or have been conducted in a manner that is unfairly prejudicial to the interests of members generally or of some part of its members (including the member themselves)

Question 4

What is the first example of a company’s affairs being conducted in a negative manner that affects all?

Answer 4

Directors exercising power for improper use - David getting things on company accounts

Question 5

What is the second example of a company’s affairs being conducted in a negative manner that affects all?

Answer 5

Diversion of company business to a majority shareholder in breach of fiduciary duty - purchasing Aisha’s husband’s land

Question 6

What is the most common remedy for an unfair prejudicial claim?

Answer 6

Buy-out order - buy out the shares of the shareholder that has brought about the unfair prejudicial claim

Question 7

Name a case where this remedy happened?

Answer 7

Re HR Harmer