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How not to seek a just and equitable winding up

Case briefing – In re Monarch Investments Ltd

Facts

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.

Decision

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.

Principle

When telling the court what you want advance as many grounds for why you should have it as are reasonably applicable.

If you need help or advice on company winding up please contact Christopher on: +44 (0) 1534 632255 or email commercial@viberts.com.

 

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