The need for companies to know their shareholders
– and the potential penalties on shareholders who provide
inaccurate responses.
The Court of Appeal recently held in JKX Oil & Gas plc v
Eclairs Group Limited that a board's power to prevent
shareholders from voting at a general meeting, exercised by the
board in the belief that such shareholders had responded
inaccurately to notices for requests for information, may be
exercised by the board regardless of the purpose for which that
power was exercised.
Relevance for private limited companies
- This judgment related to the service
by a premium listed company of a request for information about
interests in its shares, known as a section 793 notice, on certain
of its shareholders – but it may well become relevant for
private limited companies too
