Unfair Prejudice?

In the absence of any recourse under the articles of association or any shareholders' agreement, aggrieved shareholders are often reminded of their rights under s.994 of the Companies Act 2006 to apply to the court for relief if they suffer unfair prejudice.

The court has wide powers and the potential respondents, while usually the other shareholders, could include past shareholders or persons who are not shareholders at all (such as directors). The right is available to shareholders and even non-shareholders who have had shares transferred to them but are awaiting registration on the register of members or those who have had shares transferred to them by the operation of law (such a trustee in bankruptcy or the personal representatives of a deceased shareholder). It is therefore an attractive option.