Unfair Prejudice and Section 994 Petitions

Protecting Your Minority Shareholder Rights with DonnellyBentley

Are you a minority shareholder facing unfair treatment?

Unfair prejudice occurs when your rights as a shareholder are violated or your interests are harmed. This can include situations where you are:

  • Excluded from important decisions
  • Denied access to information
  • Treated unfairly compared to majority shareholders
  • Witness to actions by the majority that undermine your rights

If you suspect unfair prejudice, a Section 994 petition could be the solution. This legal recourse allows you to petition the Court for relief if you believe the company’s affairs have been conducted in a way that harms you.

DonnellyBentley Forensic Accountants: Your Ally in Section 994 Petitions

The most common outcome of a successful Section 994 petition is the Court ordering the majority shareholders to buy your shares at a fair price. This fair price may reflect the company’s value without the unfair conduct.

To achieve this outcome, a strong valuation of the company is crucial. Here’s how DonnellyBentley’s forensic accountants can be your ally:

  • Uncovering Hidden Issues: We go beyond the surface of the company’s financial records. Our forensic accountants meticulously analyse them to identify anomalies or discrepancies that might have been missed. These can significantly impact the potential settlement and the company’s value.
  • Quantifying the Impact: The unfair conduct may have reduced the company’s value. For instance, if company funds were used for personal expenses. However, the impact might be lessened if the funds were documented as a loan owed by a director. Our team will assess the conduct and its financial consequences.
  • Expert Valuation Reports: Our CPR-compliant valuation reports consider all relevant factors, including the alleged unfair conduct. We determine the appropriate discount for your minority shares, taking into account factors like the company’s structure and shareholder power dynamics.

Protecting Your Rights as a Minority Shareholder

Don’t let unfair treatment diminish your investment. DonnellyBentley’s forensic accountants have the expertise to help you navigate Section 994 petitions and secure a fair outcome.

Contact us today for a consultation 01204 388 675

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