When Will The Courts Remove A Director?

In a very recent case (19 August 2024), the English High Court continued a petitioner's ex parte injunction to remove a director under section 994 of the Companies Act 2006. The High Court found strong evidence that the respondent had breached sanctions by causing the companies to trade with Russia, giving a high degree of assurance that the petitioner would prove unfair prejudice at trial. This was an exceptional case but would likely be followed in the BVI.

Background

In a case involving a petition under the Companies Act 2006, s.994, the petitioner sought the removal of the first respondent (C) as a director of several companies that manufactured and sold luxury perfumes. Both the petitioner and C owned approximately 41% of the shares in the parent company, with C managing the business.