Why the Client Needed Our Help
Our client, a company director, issued an unfair prejudice petition against a co-director and asked us to assist with progressing the case and advising on settlement options. The petition alleged that the co-director had acted improperly by neglecting company business, paying herself excessive remuneration, keeping the company’s financial position secret, failing to maintain proper funding, and unfairly depriving our client of trust fund proceeds to which he was entitled. The co-director had also exposed the company to the risk of a winding-up petition following an improper assignment of assets.
How We Helped
The unfair prejudice petition had been ongoing since 2021. After two years of litigation, the client turned to Francis Wilks & Jones for strategic advice ahead of trial. Our team carried out a detailed review of the pleadings, evidence, and extensive correspondence between the parties. We assessed the legal and commercial strengths of the case, identifying leverage points that could be used to secure a settlement. By presenting a clear and persuasive case to the other side, we opened constructive negotiations at a late stage in the proceedings.
The Outcome
Just days before trial, we achieved a highly favourable settlement. The agreement resolved the dispute without the need for a costly High Court hearing and within months of our instruction. Importantly, the terms went beyond what a successful petition would have delivered: our client obtained an effective saving on shares valued at approximately £200,000. This represented a swift and commercially advantageous resolution after years of delay and uncertainty.
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
