Q&As

A party to financial proceedings is a director and shareholder of a private limited company, and the other party to the proceedings has requested management accounts for that company. There are multiple directors and the managing director has refused to allow any information to be released. Can the managing director refuse to release information, and if not what steps can be taken?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 09/05/2018

The following Family Q&A Produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • A party to financial proceedings is a director and shareholder of a private limited company, and the other party to the proceedings has requested management accounts for that company. There are multiple directors and the managing director has refused to allow any information to be released. Can the managing director refuse to release information, and if not what steps can be taken?

It is a relatively common occurrence that, where the court is asked to divide matrimonial assets within financial remedy proceedings upon divorce, some of those assets relate to third parties. This is particularly the case where companies are involved. Where the parties, or one of them, is the sole controller of that company, the court will often require disclosure of management accounts as well as the publicly-available balance sheet and profit and loss accounts. However, where that party is a director and shareholder of a company alongside other unrelated parties, and particularly where the party does not have control of the company, difficulties in respect of disclosure can arise.

In financial remedy proceedings there is a general duty of disclosure. These are provided for by exchange of financial statements in Form E and a request for further information by way of questionna

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