Company

Company acting in a manner prejudicial to member - jurisdiction to grant interlocutory injunction maintaining status quoIn re X Ltd: ChD (Mr Justice Neuberger): 30 April 2001The claimant was a shareholder and a director of a company.

In April 2001 the board of the company said that it intended to call an extraordinary general meeting with a view to removing the petitioner as a director.The claimant averred that the company proposed to act in a manner which was prejudicial to him and intended to bring proceedings pursuant to section 459 of the Companies Act 1985.The claimant sought an interlocutory injunction restraining the company from holding an extraordinary general meeting and/or from removing him as a director.Paul French (instructed by Rickerby Watterson, Cheltenham) for the claimant.

Elizabeth Weaver (instructed by Nicholson Graham & Jones) for the company.Held, dismissing the application for an interlocutory injunction, that where an applicant had issued proceedings under section 459 which the court considered stood a real prospect of success the court had the power to grant interlocutory relief; that that was particularly so where it was necessary to maintain the status quo or to ensure that the relief that may ultimately be granted was not rendered nugatory or less effective by virtue of what would otherwise occur were the interlocutory injunction not granted, but; that since the claimant did not have a reasonably arguable case on the facts, the court would deny the relief sought.