In July 2023, judgment was given in the case of Re Mitt Wearables, an unfair prejudice petition brought under section 994 of the Companies Act 2006. Laytons ETL acted for Koalaa Ltd (the innovative designer and manufacturer of soft sleeve prosthetics), one of the successful respondents to the petition.
Unfair prejudice petitions under s.994 Companies Act 2006 are a key way for minority shareholders to pursue claims when their interests have been adversely affected by the conduct of the majority. However, until very recently, there was considerable doubt as to whether claims brought in this way by minority shareholders could be time-barred under the provisions of the Limitation Act 1980, and, if so, how. The received wisdom was that they probably couldn’t be.
