Why the client needed our help
We were approached by a large number of members of an investment company with complaints about the direction and management of the company. In particular, steps they believed had been taken to diminish the returns to all members and favourable treatment towards the leading operational director. Our clients were facing a considerable reduction in returns on their interest while the business continued to be profitable and the lead managing partner appeared to be increasingly better off, to the point where his small share of the business had grown to almost the entirety of the annual income returns.
The business had a public profile which would have been impacted with the publicity of proceedings, and so we were approached to assist in negotiations with the prospect of seeking a mediated outcome while also focusing on the issue of proceedings to seek an independent determination and recourse for their losses over the last few years.
How we helped
After making extensive enquiries in order to fully understand the business, we sent pre-action correspondence answering all issues. Eventually, proceedings were drafted to seek the court’s interpretation and orders for the restitution of monies and a repair of the company.
Negotiations proceeded but were not successful and complex draft proceedings were drawn up to seek a recovery for losses on various grounds, including unfair prejudice, which had not properly been carved out of the constitution of the business.
Francis Wilks & Jones were responsive, available at all times to deal with any of my queries and very reassuring. I would definitely recommend them to deal with proceedings brought on behalf of shareholders – they understood our practical needs.A shareholder we helped bring unfair prejudice proceedings against a fellow shareholder who had been interfering with the management of the company and damaging its value