Friday 2 June 2017

UK: England and Wales: the exercise of discretion and a share option agreement

His Honour Judge Waksman QC (sitting as a Judge of the High Court) gave judgment at the end of last month in Watson v Ltd [2017] EWHC 1275 (Comm). A summary of the case has now been provided by the ICLR: see here. Here is an extract from the summary: "Although the court would not, in every case, inevitably find that a discretion should not be exercised in a manner that was arbitrary, capricious or irrational in the public law sense, it was appropriate to do so in relation to the share option agreement. To conclude otherwise would give rise to commercial absurdity and render the share option agreement worthless".

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