Unfair Prejudice Petitions 

Protecting your interests

Unfair Prejudice Petitions Lawyers, Glasgow

Claims of unfair prejudice arise where a shareholder believes that a company is acting in a way that is unfairly prejudicial to the interests of members generally or some part of its members. In such situations, the Companies Act 2006 s.994 allows a shareholder to seek a court remedy, including an order that the company refrains from doing or continuing the conduct complained of.
We regularly take instruction from business clients when their relationship with shareholders have broken down. We always encourage negotiation and other forms of alternative dispute resolution to settle internal disagreements. However, where litigation is inevitable, we will strongly protect your interests and use our extensive knowledge and experience of business law issues to reach the best possible solution.
For professional and proactive advice, call us on 0141 258 4117 or complete our online contact form and we will be in touch.

To discuss your circumstances and get the advice you need, get in touch today

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Unfair Prejudice Claims

To show unfair prejudice, the shareholder must demonstrate that the conduct was unfair and prejudicial – both must be shown if the petition is to be successful.

Unfair conduct

The fairness of the conduct will be judged based on the facts of the case and in the context of the commercial relationship. The court will look at the agreed terms in the Shareholders Agreement and the Articles of Association in making its decision.

    Based on the facts of the case and in the context of the commercial relationship.

Prejudicial to the interests of members

The second aspect of an unfair prejudice claim is showing that the members’ interests have been prejudiced. Members’ interests are not restricted to financial or legal issues but may also apply to the shareholders’ legitimate expectations, for example, of participation in making decisions about the company.
 Examples of unfair prejudice include:

    Directors awarding themselves excessive bonuses
    Shareholders being excluded in circumstances where they have a legitimate expectation of being included
    Breaches of the company’s Articles of Association
    An abuse of powers

Contact our Unfair Prejudice Petitions Lawyers in Glasgow, Scotland

In cases of alleged unfair prejudice, seeking legal advice as early as possible is vital to safeguard your business. We have extensive experience advising clients in a wide range of internal dispute situations. All our work is undertaken by Yvonne Morgan, a senior partner at our firm with over 30 years of experience in the commercial sector.
For prompt and reliable commercial law advice, call Morgan Legal on us on 0141 258 4117 or complete our online contact form.

Get in touch


Regent House, 113 West Regent StreetGlasgow, G2 2RU

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