Companies Act 2006 c. 46. Part 30 PROTECTION OF MEMBERS AGAINST UNFAIR PREJUDICE. Main provisions
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1 994 Petition by company member Main provisions This version in force from: May 26, 2015 to present (version 3 of 3) (1) A member of a company may apply to the court by petition for an order under this Part on the ground (a) that the company's affairs are being or have been conducted in a manner that is unfairly prejudicial to the interests of members generally or of some part of its members (including at least himself), or (b) that an actual or proposed act or omission of the company (including an act or omission on its behalf) is or would be so prejudicial. [ (1A) For the purposes of subsection (1)(a), a removal of the company's auditor from office (a) on grounds of divergence of opinions on accounting treatments or audit procedures, or (b) on any other improper grounds, shall be treated as being unfairly prejudicial to the interests of some part of the company's members. ] 1 (2) The provisions of this Part apply to a person who is not a member of a company but to whom shares in the company have been transferred or transmitted by operation of law as they apply to a member of a company. (3) In this section, and so far as applicable for the purposes of this section in the other provisions of this Part, company means (a) a company within the meaning of this Act [.] 2 [...] 2
2 Page2 Notes Added by Statutory Auditors and Third Country Auditors Regulations 2007/3494 Pt 6 reg.42(1) (April 6, 2008: insertion of s.994(1a) does not apply in relation to auditors appointed for financial years beginning before April 6, 2008) Repealed by Deregulation Act 2015 c. 20 Sch.23(5) para.28(7) (May 26, 2015) Modifications Pt 30 s. 994 Pt 30 s. 994(3)(a) Modified in relation to LLPs by Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009/1804, Pt 12 reg. 48 Modified with transitional adaptations by Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007/2194, Sch. 1 para. 19(2), art. 6, art. 12 Subject: Company law Keywords: Auditors; Petitions; Removal; Shareholders; Unfairly prejudicial conduct
3 Main provisions This version in force from: April 1, 2013 to present (version 2 of 2) 995 Petition by Secretary of State (1) This section applies to a company in respect of which (a) the Secretary of State has received a report under section 437 of the Companies Act 1985 (c. 6) (inspector's report); (b) the Secretary of State has exercised his powers under section 447 or 448 of that Act (powers to require documents and information or to enter and search premises); (c) the Secretary of State [, the Financial Conduct Authority, the Prudential Regulation Authority or the Bank of England] 1 has exercised his or its powers under Part 11 of the Financial Services and Markets Act 2000 (c. 8) (information gathering and investigations); or (d) the Secretary of State has received a report from an investigator appointed by him [, the Financial Conduct Authority, the Prudential Regulation Authority or the Bank of England] 2 under that Part. (2) If it appears to the Secretary of State that in the case of such a company (a) the company's affairs are being or have been conducted in a manner that is unfairly prejudicial to the interests of members generally or of some part of its members, or (b) an actual or proposed act or omission of the company (including an act or omission on its behalf) is or would be so prejudicial, he may apply to the court by petition for an order under this Part. (3) The Secretary of State may do this in addition to, or instead of, presenting a petition for the winding up of the company. (4) In this section, and so far as applicable for the purposes of this section in the other provisions of this Part, company means any body corporate that is liable to be wound up under the Insolvency Act 1986 (c. 45) or the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)).
4 Page2 Notes Words substituted by Financial Services Act 2012 c. 21 Sch.18(2) para.120(a) (April 1, 2013) Words substituted by Financial Services Act 2012 c. 21 Sch.18(2) para.120(b) (April 1, 2013) Modifications Pt 30 s. 995 Pt 30 s. 995(4) Modified in relation to LLPs by Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009/1804, Pt 12 reg. 48 Modified in relation to a company or body corporate which is liable to be wound up but for 1991 c.56 s.25 by Water Consolidation (Consequential Provisions) Act 1991 c. 60, Sch. 1 para. 40 Subject: Company law Keywords: Company investigations; Ministers' powers and duties; Petitions; Unfairly prejudicial conduct
5 Main provisions This version in force from: October 1, 2007 to present 996 Powers of the court under this Part (version 1 of 1) (1) If the court is satisfied that a petition under this Part is well founded, it may make such order as it thinks fit for giving relief in respect of the matters complained of. (2) Without prejudice to the generality of subsection (1), the court's order may (a) regulate the conduct of the company's affairs in the future; (b) require the company (i) to refrain from doing or continuing an act complained of, or (ii) to do an act that the petitioner has complained it has omitted to do; (c) authorise civil proceedings to be brought in the name and on behalf of the company by such person or persons and on such terms as the court may direct; (d) require the company not to make any, or any specified, alterations in its articles without the leave of the court; (e) provide for the purchase of the shares of any members of the company by other members or by the company itself and, in the case of a purchase by the company itself, the reduction of the company's capital accordingly. Modifications Pt 30 s. 996 Modified in relation to LLPs by Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009/1804, Pt 12 reg. 48 Subject: Company law Keywords: Companies; Judgments and orders; Petitions; Unfairly prejudicial conduct
6 Supplementary provisions This version in force from: October 1, 2007 to present (version 1 of 1) 997 Application of general rule-making powers The power to make rules under section 411 of the Insolvency Act 1986 (c. 45) or Article 359 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), so far as relating to a winding-up petition, applies for the purposes of a petition under this Part. Modifications Pt 30 s. 997 Modified in relation to LLPs by Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009/1804, Pt 12 reg. 49 Subject: Company law Keywords: Insolvency; Interpretation; Petitions; Rules; Unfairly prejudicial conduct
7 Supplementary provisions This version in force from: October 1, 2007 to present (version 1 of 1) 998 Copy of order affecting company's constitution to be delivered to registrar (1) Where an order of the court under this Part (a) alters the company's constitution, or (b) gives leave for the company to make any, or any specified, alterations to its constitution, the company must deliver a copy of the order to the registrar. (2) It must do so within 14 days from the making of the order or such longer period as the court may allow. (3) If a company makes default in complying with this section, an offence is committed by (a) the company, and (b) every officer of the company who is in default. (4) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on the standard scale and, for continued contravention, a daily default fine not exceeding one-tenth of level 3 on the standard scale. Subject: Company law Other related subjects: Criminal law Keywords: Company constitutions; Filing; Judgments and orders; Offences; Petitions; Unfairly prejudicial conduct; Variation
8 Supplementary provisions This version in force from: October 1, 2007 to present (version 1 of 1) 999 Supplementary provisions where company's constitution altered (1) This section applies where an order under this Part alters a company's constitution. (2) If the order amends (a) a company's articles, or (b) any resolution or agreement to which Chapter 3 of Part 3 applies (resolution or agreement affecting a company's constitution), the copy of the order delivered to the registrar by the company under section 998 must be accompanied by a copy of the company's articles, or the resolution or agreement in question, as amended. (3) Every copy of a company's articles issued by the company after the order is made must be accompanied by a copy of the order, unless the effect of the order has been incorporated into the articles by amendment. (4) If a company makes default in complying with this section an offence is committed by (a) the company, and (b) every officer of the company who is in default. (5) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on the standard scale. Subject: Company law Other related subjects: Criminal law Keywords: Company constitutions; Filing; Judgments and orders; Offences; Petitions; Unfairly prejudicial conduct; Variation
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