In a recent case, the court used its case management powers to order a split trial. Daniel Lightman KC elaborates
- Only a member of a company can present an unfair prejudice petition under s 994 of the Companies Act 2006.
- Where someone not currently a member who claims to be entitled to retrospective rectification of the company’s register of members presents a petition, the traditional approach has been to strike out the petition, or to stay it while the petitioner seeks to establish their entitlement to petition in separate proceedings.
- However, in a recent case, the court made novel use of its case management powers to order a split trial and direct that the first trial should determine both whether the register of members should be rectified and whether the petition was well founded.
It is a long-established principle that only a registered shareholder can present an unfair prejudice petition under s 994 of the Companies Act 2006 (CA 2006) and an intended petitioner lacking locus standi is required first to issue separate proceedings
