Specialist Advice on Unfair Prejudice Claims Under the Companies Act 2006
Unfairly prejudicial conduct can arise when the affairs of a company are conducted in a manner that unfairly prejudices the interests of one or more shareholders. If left unaddressed, such conduct can seriously damage both shareholder value and the future of the business.
Our London-based solicitors support shareholders and companies with unfair prejudice claims, offering clear, strategic advice and practical solutions shaped around what you want to achieve.
What Is Unfairly Prejudicial Conduct?
Under section 994 of the Companies Act 2006, a shareholder may bring a claim where a company’s affairs are being conducted in a way that is unfairly prejudicial to their interests.
Common examples of unfairly prejudicial conduct includes:
- 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
- Breaches 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 advice is practical and grounded in the realities of running a business, making sure the legal approach supports your broader goals and what you’re trying to achieve overall.
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
Our experienced solicitors provide clear guidance on the remedies available, and the likely outcomes based on your specific circumstances and the nature of the case.
Resolving Disputes Without Litigation
While unfair prejudice claims are often subject to court proceedings, many disputes can be resolved through:
- Negotiation
- Mediation
- Structured settlement discussions
Wherever possible, we aim to resolve matters efficiently and ensure your legal position is protected should proceedings become necessary.
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.
Contact Us Today
We are a boutique Mayfair firm with over 30 years’ legal experience. Trusted by businesses, entrepreneurs and high-net-worth individuals; we are fast, discreet, and highly responsive, often within 24 hours. Contact us today for expert advice.