Time’s Not Up: A New Era for Limitation in Unfair Prejudice Claims
The Supreme Court has resolved a long-standing uncertainty concerning the application of the Limitation Act 1980 to unfair prejudice petitions under sections 994 and 996 of the Companies Act 2006. In allowing the appeal by majority, the Court held that neither section 8 ("actions upon a specialty") nor section 9 ("actions to recover any sum recoverable by virtue of any enactment") applies to proceedings under section 994. Consequently, there is no statutory limitation period governing unfair prejudice petitions. The decision represents an important clarification of both the nature of the unfair prejudice jurisdiction and the scope of the Limitation Act. It also marks a significant departure from the Court of Appeal's analysis and casts doubt upon several earlier authorities concerning the application of section 9 to statutory claims involving discretionary remedies. Background The petitioner acquired a minority shareholding in the respondent company in 2013 and...
