Case summaries

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It’s a Wrap (UK) Ltd v Gula [2006] EWCA Civ 544

A company in liquidation sought to recover unlawful dividends paid to director-shareholders when there were no profits available for distribution. The Court of Appeal held that shareholders are liable under section 277(1) Companies Act 1985 if they knew the facts constituting the contravention, regardless of whether they knew the legal...

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In Plus Group Ltd v Pyke [2002] EWCA Civ 370

Mr Pyke, a director excluded from company management after suffering a stroke, set up a competing business with his former company's main customer. The Court of Appeal held he did not breach fiduciary duty because his exclusion from all company affairs meant his directorship was nominal, eliminating any conflict of...

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Iesini v Westrip Holdings Ltd [2009] EWHC 2526 (Ch)

Shareholders sought permission to continue a derivative claim against directors alleging breach of duty in accepting rescission of share sale agreements and failing to assert beneficial ownership of mining licences. The court refused permission for most claims but adjourned consideration of the trust claim, directing the board to reconsider its...

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Knight v Knight (1840) 49 ER 58

Context and significance The case is the classic authority on: Lord Langdale MR states the now-famous rule that where you try to derive a trust from precatory language, there must be: Modern textbooks repackage this as: certainty of intention, certainty of subject matter, and certainty of objects. On the facts,...

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Keech v Sandford [1726] EWHC Ch J76

A trustee held a lease of market profits for an infant beneficiary. When the lessor refused to renew for the infant, the trustee obtained the lease himself. The court held he must assign it to the infant and account for profits, establishing the strict 'no profit' rule for fiduciaries. Facts...

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R (Miller) v Prime Minister [2019] UKSC 41

The Prime Minister advised the Queen to prorogue Parliament for five weeks during the critical Brexit period. The Supreme Court unanimously held this advice was unlawful as it frustrated Parliament's constitutional functions without reasonable justification. The prorogation was declared null and of no effect. Facts In August 2019, Prime Minister...

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Re Hawk Insurance Co Ltd [2001] EWCA Civ 241

An insolvent insurance company in provisional liquidation sought court sanction for a scheme of arrangement with its creditors. The High Court refused, holding separate class meetings were required due to differential dividend weightings. The Court of Appeal allowed the appeal, finding all creditors could consult together with a view to...

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Graham v Every [2014] EWCA Civ 191

Mr Graham, a shareholder in Below Zero London Ltd (an ice bar company), petitioned for relief from unfair prejudice under section 994 of the Companies Act 2006 after being excluded from management. The Court of Appeal allowed his appeal regarding struck-out allegations about shareholder understandings and non-compliant share purchases, holding...

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Grace v Biagioli [2005] EWCA Civ 1222

Mr Grace, a 25% shareholder in Telpro UK, petitioned under s.459 Companies Act 1985 after being denied his declared dividend and removed as director. The Court of Appeal held the non-payment was unfairly prejudicial and ordered the respondents to purchase his shares, reversing the trial judge's limited remedy. Facts Mr...

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Google LLC v Lloyd [2021] UKSC 50

Mr Lloyd sought to bring a representative action against Google for alleged breaches of the Data Protection Act 1998, claiming Google secretly tracked iPhone users' internet activity via the 'Safari workaround' and used data commercially without consent. The Supreme Court held that compensation under the DPA 1998 requires proof of...

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Franbar Holdings Ltd v Patel [2008] EWHC 1534 (Ch)

Franbar Holdings Ltd, a 25% shareholder in Medicentres, sought permission to continue a derivative claim against directors Patel and du Plessis for alleged breaches of duty including diversion of business opportunities. The court refused permission, finding Franbar had adequate alternative remedies through its existing unfair prejudice petition and shareholders' action....

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Universal Project Management Services Ltd v Fort Gilkicker Ltd – Re Fort Gilkicker Ltd [2013] EWHC 348 (Ch)

UPMS, a member of an LLP which wholly owned Fort Gilkicker Ltd, sought permission to bring a double derivative action against a director who allegedly misappropriated a business opportunity. The court held that multiple derivative actions survived the Companies Act 2006 and granted permission to continue the claim. Facts Universal...

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First Subsea Ltd v Balltec [2017] EWCA Civ 186

A company director prepared and submitted competitive bids for contracts through a rival company whilst still a director. The Court of Appeal held that his breaches of fiduciary duty were fraudulent within s.21(1)(a) Limitation Act 1980, meaning no limitation period applied. Directors are Class 1 fiduciaries and trustees for limitation...