Significant departure from long standing shareholder rule

In the landmark judgment of Aabar Holdings Sarl v Glencore plc and Ors [2024] EWHC 3046 (Comm), the High Court has held that the so-called ‘Shareholder Rule’, which prevents a company from asserting privilege against its own shareholders (except in very limited circumstances), does not exist in English law. 

This decision represents a significant departure from a long-standing legal principle, and it will have significant ramifications for shareholder litigants and any company defending a shareholder claim.

Background