Friday, 6 June 2014

Law report - purchase of a minority shareholding

MFP-2000 LP v Viking Capital Limited [2014] SC (Bda) 6 Com

The Respondents, as holders of more than 95% of the shareholding of a company, had given notice to buy out the shares of the Applicant. Before the purchase took place, the Respondents were no longer the holders of more than 95%. The court was required to resolve the issue of whether this prevented the Respondents from enforcing the purchase.

Hellman J balanced the competing constructions and concluded the more commercially sensible construction was that the Respondents were not required to still hold more than 95% at the time of the purchase.

Law report - security for costs

Galloway v Roth [2013] SC (Bda) 81 Civ

The overseas Petitioner was of very limited means and the Respondent sought security of at least $7,000.

It was held by Hellman J that, having regard to the Consitutional right to a fair hearing, the court must have regard to the amount of security a party might be able to raise.

In the event, $1,000 security was ordered.