Shareholder Protection from Unfair Prejudice Case and Statute Citator 2025
This guide explains how section 994 of the Companies Act 2006 allows shareholders to seek court relief where a company’s affairs are conducted unfairly prejudicially to their interests. Such disputes often occur in small private companies where shareholders are also directors. Common issues include exclusion from management, misuse of funds, or breaches of directors’ duties.
The court has wide powers under section 996, most often ordering a fair-value share buyout. “Unfair prejudice” is judged objectively — the conduct must be both unfair and damaging to a shareholder’s interests. The concept is especially relevant in “quasi-partnership” companies built on trust and mutual participation.
The citator compiles key cases and statutes, outlining procedure, remedies, and judicial interpretation, making it a practical reference for lawyers handling shareholder disputes and unfair prejudice claims.
