How not to seek a just and equitable winding up
Case briefing – In re Monarch Investments Ltd
Two brothers, R and K, inherited shares in the family holding co and both were directors. K had a minority holding and lost faith in R who the accountant said was treating Monarch pretty much as if it were his alone.
K did not seek a winding up on the just and equitable ground, but (perhaps aiming to save costs or get R back to the negotiating table) did seek a ruling that Monarch was no longer able to achieve its purpose, which is one of the five grounds upon which a just and equitable winding up may be obtained. The court held that Monarch was still perfectly able to achieve its purpose, i.e. hold a portfolio of investments, but that it might very well have ordered a just and equitable winding up on other grounds.
When telling the court what you want advance as many grounds for why you should have it as are reasonably applicable.
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