Company and shareholder/director instructed solicitors, DJM Law Limited, to assist on the sale of a company asset to the director/shareholder. Solicitors failed to advise on the potential conflict when acting for both the seller and purchaser, and the need for a shareholder resolution to approve the transaction.
Subsequently the other majority shareholder issued proceedings for unfair prejudice on the basis of the breach of section 190 of the Companies Act 2006. That claim compromised.
The company and director are now pursuing the former solicitors for exposing them to a risk they should not have i.e. the unfair prejudice petition. Proceedings were issued in June 2023. Mediation took place in January 2024, but the matter did not settle.
The case involves interesting issues over scope of duty, causation and quantum.
The information provided in this article is provided for general information purposes only, and does not provide definitive advice. It does not amount to legal or other professional advice and so you should not rely on any information contained here as if it were such advice.
Wright Hassall does not accept any responsibility for any loss which may arise from reliance on any information published here. Definitive advice can only be given with full knowledge of all relevant facts. If you need such advice please contact a member of our professional staff.
The information published across our Knowledge Base is correct at the time of going to press.
