Excluded from Management? Facing Unfair Treatment as a Shareholder?
If you are a shareholder of a company and you feel that you might be unfairly prejudiced, then Nath Solicitors is the ideal choice.
What is An Unfair Prejudice Petition?
An unfair prejudice petition is a legal claim that allows a shareholder to ask the court to intervene when a company is being run in a way that is unfairly prejudicial to their interests.
Shareholders can ask a court to intervene under Section 994 of the Companies Act 2006 if their interests are being managed in a way that unfairly disadvantages them. This is the main legal way for minority shareholders to challenge oppression by the majority.
Common Examples of Unfairly Prejudicial Conduct Include:
- Exclusion of a shareholder from management
- Failure to declare or pay dividends
- Excessive director remuneration or misuse of company funds
- Dilution of shareholdings
- Diversion of business opportunities
- Breach of shareholder agreements or articles of association
- Lack of transparency or denial of access to company information
These claims often arise in owner-managed businesses and private companies where trust between shareholders has broken down.
Our Unfair Prejudice Legal Services
We provide comprehensive legal support to shareholders, directors, and companies in relation to unfair prejudice matters, including:
- Assessing the merits of an unfair prejudice claim
- Advising on strategy and potential remedies
- Preparing and issuing section 994 petitions
- Defending unfair prejudice claims
- Negotiating shareholder exits and settlements
- Share valuation disputes and expert evidence
- High Court representation
Our legal strategy is always commercially focused to align with your broader business objectives.
Remedies for Unfairly Prejudicial Conduct
The most common remedy ordered by the court is a buy-out of the affected shareholder’s shares at fair value, often without a minority discount. Other potential remedies may include:
- Regulation of the company’s affairs
- Injunctions or declarations
- Orders to amend company articles
- In rare cases, winding up of the company
We provide clear guidance on the remedies available, and the likely outcomes tailored to your specific circumstances.
Resolving Disputes Without Litigation
Even though many unfair prejudice claims are frequently taken to court, many disputes can be settled by:
- Negotiation
- Mediation
- Structured settlement discussions
Our goal is to resolve issues promptly and efficiently while protecting your legal interests if court action is required.
Why Choose Us
- Extensive experience in shareholder and company disputes
- In-depth knowledge of section 994 Companies Act claims
- Commercial, outcome-focused advice
- Transparent costs and practical timescales
- London-based firm acting nationwide
We understand the personal and financial impact unfairly prejudicial conduct can have and provide discreet, strategic representation throughout the process.
Speak to Us
If you need experienced legal representation in London, or you are in the UK and require assistance with either a dispute or a litigation matter, we would be pleased to discuss how we can help.
Because we are a leading boutique in London law firm with over 30 years of experience, we have successfully advised businesses, large organisations, professionals, and private individuals across the UK and internationally. We provide tailored legal solutions that are focused on achieving the best possible outcome for our clients, handling matters efficiently, strategically, and as swiftly as possible.
If you need advice or assistance, please contact Nath Solicitors on 0203 983 8278 or get in touch with the firm online.