Western Morning News 31 July 2003

31/07/2003

Question:
I am a shareholder in a company run by other family members. I fell out with my family last year. Now no one is telling me what is going on in the company. Everyone else seems to be making money from the company except me and I suspect that I am losing out somehow. What can I do?

Answer:
The first step is to get hold of the company’s accounts and annual returns to see if they show that your suspicions are well-founded. As business solicitors we can get hold of that information very quickly on-line.

The court has wide-ranging powers to look into how companies operate if the rights of minority shareholders are being affected. If you, as a shareholder, can show that the company’s affairs are being conducted in a way that unfairly prejudices your interests then you can apply to the court for an order that you are compensated.

It is an aggressive thing to do and can be difficult to achieve, but it can put the company or its officers under a lot of pressure. The mere threat can sometimes be enough to persuade a company that has been misbehaving to stop misbehaving and provide some compensation. It is well worth discussing it further with a specialist business lawyer.

Martin Pearse is a Commercial Litigator and Partner of Follett Stock solicitors