Friday, 15 October 2010

UK: England and Wales: High Court orders reconstitution of boards in Liverpool FC case

Earlier this week, against the background of much media attention and publicity, the High Court ordered that the boards of two companies should be reconstituted. The membership of the boards had been changed by the controlling shareholders in breach of an agreement with Royal Bank of Scotland, which had provided finance for the purchase of Liverpool Football Club, and which required certain governance structures to be adopted (including a limitation on the shareholders' ability to appoint new board members).

There is a good summary of the legal issues here and a copy of the trial judge's main judgment in the proceedings is available here (pdf). The judgment is not yet available on the BAILII database.

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