Section 994 of the Companies Act 2006 gives the shareholders of a company the right to issue proceedings against that company where they feel that the company has been or is being conducted in a manner that is unfairly prejudicial to the shareholders. Where an action is brought against an insolvent company, the shareholder will also have to show that his shares would have had value, but for the unfairly prejudicial actions of the wrongdoer.
In the case of Maidment v Attwood and Others, Mr Maidment, a minority shareholder of Tobian Properties Ltd claimed that the conduct of the sole director of the company, Mr Attwood amounted to unfair prejudice.
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