- Court of Appeal considers interim relief pending claim to wind up partnerships and unfair prejudice petition (Loveridge v Loveridge)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Dispute Resolution analysis: In considering interim relief, and in particular relief the effect of which was to exclude one faction from the management of the business until final resolution of the dispute, the court had to have regard to the likely outcomes to the proceedings. In the case of a partnership, where notice of dissolution had been validly served, the outcome was easy to predict—the partnership would be wound up and, absent any relevant provision in the partnership agreement, the court had to determine who would be best placed to conduct the business of the partnership pending winding up. The outcome of an unfair prejudice petition was less clear. Nevertheless, where, as here, a minority shareholder complained of unfair prejudice there was at least a substantial prospect that he would be bought out by the majority and they would continue to run the companies after the resolution of the dispute. The governance of a company was dictated by its constitutional documents and any shareholders agreement. While an order giving exclusive control of the company to the minority shareholder could not be ruled out as a matter of principle, such an order would only be made in exceptional circumstances which did not exist in the instant case. Written by David Fisher, barrister, and associate member, at New Square Chambers.
Sign in or take a trial to read the full analysis.
To continue reading this news article, as well as thousands of others like it, sign in to LexisPSL or register for a free trial