JMW acted on behalf of Mrs H in a dispute between two shareholders of a farming business. The main assets of the business were large parcels of land. There was a shareholders’ agreement in place which had been breached by the Respondent on a continuous basis and this was causing significant prejudice to our client.

The shareholders agreement stipulated that the land belonging to the company had to be sold within so many years. An offer to purchase the land belonging to the company was received by the shareholders but the Respondent was behaving in an obstructive manner and was refusing to engage in any sensible and constructive discussions with the developer. Ultimately a petition for unfair prejudice pursuant to s.994 of the Companies Act was issued by our client in an effort to bring matters to a conclusion and to minimise the prejudice suffered.

During the course of the claim, a headline settlement agreement was reached between the parties. However, due to the further failure of the Respondent to sign the sale contracts with the developers in accordance with the terms of the settlement, the claim proceeded.

Following extensive negotiations and some strategic outmanoeuvring a matter of weeks before trial, our litigation lawyers secured a position for our client which resulted in a successful and comprehensive settlement agreement being reached with the Respondent. JMW’s litigation lawyers drafted the settlement agreement on terms which were favourable to our client. 

The outcome resulted in the Respondent signing the sale contracts with the developers and our client receiving her 50% share of the value of the land estimated to be worth in the region of c£5M; an outcome which Mrs H is delighted with. Our client is looking ahead positively to the future and moving on with her life.

Please get in touch using our contact form if you wish to discuss any similar issues you might be experiencing involving a dispute between shareholders.