Offshore Insights: Shareholder Remedies

Join us for the next webinar in our brand new webinar series, NSC Offshore Insights. The next instalment features Adrian Pay, who will be delving into the topic of “Shareholder Remedies”.

Further info

Adrian Pay will be discussing shareholder remedies in this jurisdiction and offshore.

The webinar will cover:

A brief history of shareholder remedies in this jurisdiction

• Winding-up on the just-and-equitable ground
• The rule in Foss v Harbottle
  • Shareholder claims directly against the company
  • The derivative action:
    • The original common law derivative action
    • The statutory derivative action under the Companies Act 2006
    • The survival of the common law derivative action for claims outside the scope of the statutory derivative action
  • The unfair prejudice remedy

Are we all the same?

Some high level similarities and differences between this jurisdiction and other common law jurisdictions

• Derivative claims (statutory and common law)
• Unfair prejudice proceedings

Recent developments

The direct shareholder action

• Tianrui (International) Holding Company Ltd v China Shanshui Cement Group Ltd JCPC 2023/0002 – appeal to the Privy Council from the CICA (argument heard, decision awaited)

Unfair prejudice proceedings

• The unfair prejudice remedy: O’Neill v Phillips [1999] 1 WLR 1092 and a wider approach?
  • Latimer Holdings Ltd v Sea Holdings New Zealand Ltd [2005] 2 NZLR 328
  • Financial Technology Ventures II (Q) LP and Ors v ETFS Capital Limited and Tuckwell [2021] JCA 176
• Good faith and fair process:
  • Re Compound Photonics Ltd [2022] EWCA Civ 1371
  • Pender v GGH (Jersey) Ltd [2023] JRC 124
• Limitation:
  • THG plc v Zedra Trust Company (Jersey) Ltd [2024] EWCA Civ 158
• The relationship with the derivative action:
  • Re Chime Corp Ltd [2004] 7 H.K.C.F.A.R. 546
  • Re Coinomi Ltd [2023] EWCA Civ 1480 [2024] B.C.C. 68
• Minority discount:
  • Dodson v Shield [2023] EWCA Civ 1391

Derivative claims

• Key differences between the common law derivative claim and a statutory derivative claim:
  • Boston Trust Co Ltd v Szerelmey Ltd [2023] EWHC 308 (Ch)
• An alternative view to the requirement of wrongdoer benefit
  • Wang Pengying v Fai and Ors [2021] HKCA 100
• A requirement of reflective loss or harm
  • McGaughey v Universities Superannuation Scheme Ltd [2023] EWCA Civ 873 [2023] Bus. L.R. 1614
• Shareholder activism
  • Clientearth v Shell Plc & Ors [2023] EWHC 1897 (Ch) 1897

Winding-up on the just-and-equitable ground

• A re-invigoration of the remedy?
  • Chu v Lau [2020] UKPC 24 [2020] 1 W.L.R. 4656
  • Financial Technology Ventures II (Q) LP and Ors v ETFS Capital Limited and Tuckwell [2021] JCA 176; Ferguson v Bespoke Ltd [2023] JRC 250
  • Re Klimvest Plc [2022] EWHC 596 (Ch) [2022] BCC 747
• Arbitration
  • FamilyMart China Holding Co Ltd v Ting Chuan (Cayman Islands) Holding Corporation [2023] UKPC 33
  • Kenworth Industrial Ltd v Xin Gang Power Investments Ltd (1.2.24) BVIHCOM 2023/0006