Companies

It was established that, in order to succeed in a petition under s 994 of the Companies Act 2006, the petitioner was required to establish that the respondent had conducted the company’s affairs in an unfairly prejudicial manner. The words “affairs of the company” were to be construed liberally. The prejudicial conduct was usually a breach of the terms on which the shareholders had agreed that the company’s affairs should be conducted, but might be on a single event which had put an end to the basis upon which the parties had entered into association with each other, so as to make it unfair that one should insist on the continuation of the association.