Wednesday 24 December 2014

Jersey: the unfair prejudice remedy and the influence of English authorities

The Royal Court (Samedi division) gave judgment a couple of days ago in Kilbey v Grafters Ltd [2014] JRC 225. The case concerned a shareholder's claim for relief under Jersey's unfair prejudice remedy (Article 141 of the Companies (Jersey) Law 1991). The court held that, were it not for the reasonable offer the shareholder had received for his shares, unfair prejudice would have been established and the court's jurisdiction to make an order invoked.

The decision contains a wide ranging discussion of various examples of unfairly prejudicial conduct and also provides an excellent illustration of the influence that English authorities (under the equivalent UK provision: section 994 of the Companies Act 2006) have in the development of this particular aspect of Jersey company law.

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