Unfair prejudice remedy unavailable for claim between shareholders

The High Court struck out part of a shareholder’s unfair prejudice petition on the basis that a failure to transfer shares between shareholders did not relate to ‘conduct of the company’s affairs’.

Unfair prejudice

An unfair prejudice claim is the main procedural route for a minority shareholder to petition the court when they believe that the company’s affairs are being conducted in a manner that is unfairly prejudicial to their interests. For the claim to be successful, the conduct complained of must: