Majority Shareholder Ordered to Buy Out Shares
13th June 2017Back to articles
When relations between the owner-managers of companies break down, the nature of the relationship can sometimes cause an escalation of the disagreements and a hardening of positions. Such appears to have been the case in a recent dispute between the owners of a company that makes military figures.
When the owners fell out, the couple who controlled the majority of the shares removed the minority (49 per cent) shareholder from the board and refused to supply him with any information about the company's finances or let him have any control over its operation.
The minority shareholder went to court claiming that the conduct of the majority shareholders was 'oppressive' on him as a minority shareholder.
He had obtained his shares when the then managing director had become ill, after which he ran the company single-handed for nearly a decade. He claimed he had then been excluded from the business, when the wife of the former managing director took over its running and brought in various family members as employees.
The High Court's solution was to order the majority shareholders to buy the minority shareholder's shares for £309,000.
If you are a minority shareholder in a company and it is being run in a way that is seriously prejudicial to your interests, you may be able to obtain redress.
Contact us for advice at any of our offices listed below:
Devizes - 01380 722311
Chippenham - 01249 478333
Marlborough - 01672 518620