Successful unfair prejudice claim

Kohli v Lit

Successful unfair prejudice claim

Ms Kohli was a minority shareholder in Sunrise Radio Limited. She asked the court for an order requiring the directors (who owned the majority of the shares in the company) to buy out her minority shareholding, alleging that their conduct:

in issuing new shares at nominal value;
in failing to disclose their remuneration in the company's accounts;
in preparing and filing the company's accounts and other returns late; and
in failing to obtain shareholder approval for the sale of a property belonging to the company to one of its directors

amounted to unfair prejudice against her in terms of section 994 of the Companies Act 2006. The court agreed and ordered the directors to buy Mrs Kohli's shares at an undiscounted value.