The section gave five grounds upon which a company may be wound up and a ‘just and equitable’ ground.
Held: the latter was not to be construed restrictively by ejusdem generis with the other grounds. A company could be wound up if a considerable proportion of the shareholders had a proper lack of confidence in the directors, and the directors had a preponderance of effective power.
Shaw L said that a company may be wound up on the just and equitable ground where there is ‘a justifiable lack of confidence in the conduct and management of the company’s affairs’ and thus a risk to the public interest that warrants protection
Judges:
Shaw L
Citations:
[1924] AC 783, 93 LJPC 257, [1924] BandCR 209, 131 LT 719, 68 SJ 735, 40 TLR 732
Jurisdiction:
Commonwealth
Cited by:
Approved – Ebrahimi v Westbourne Galleries Ltd and Others (on Appeal from In Re Westbourne Galleries Ltd) HL 3-May-1972
Unfair Prejudice to Minority Shareholder
A company had operated effectively as a partnership between two and then three directors. No dividends had been paid, but the directors had received salaries. One director was removed and sought an order for the other to purchase his shares, or . .
Lists of cited by and citing cases may be incomplete.
Company
Updated: 28 April 2022; Ref: scu.180915
