Why the client needed our help
Our client, a private individual, was a director and shareholder of a limited company which was trading successfully. He was one of two directors in the company and a 50% shareholder. We were instructed to resolve a dispute which had arisen between the two shareholders. Additionally, the other director/shareholder had issued a petition to wind up the company, which our client disputed given that it was trading successfully.
How we helped
Our client was the respondent to the petition. We were able to advise him on the best strategy to adopt, which included the merits of opposing the petition. We were instructed to prepare a robust letter to the petitioner and seek his voluntary withdrawal of the petition.
Our letter was effective in undermining the petition and criticising the petitioner’s conduct. The petitioner agreed to withdraw it before the hearing was due to take place. However, the court would not agree so we had to instruct junior counsel to attend. This was really only a procedural issue as the judge wanted to be satisfied of the company’s financial position.
The hearing lasted approximately 15 minutes and our client was awarded his costs incurred in connection with the barrister attending. This meant that the company was not wound up and was able to continue trading.
Our client was then able to negotiate with the other director/shareholder for his voluntary exit from the company. We provided ad hoc advice in relation to this and the client achieved a fantastic result.
Supportive and friendly with partner-led involvement, I would recommend Francis Wilks & Jones to anyone facing a similar situation.A shareholder who turned to us after discovering that his co-shareholder was profiting well from their business while he was being paid a pittance. We helped him find a way out of the business by selling his shares