Hughes & Ors v Bourne & Ors [2012] EWHC 2232 (Ch) (27 July 2012)

The Bourne and Moss families, as sole beneficiaries of their respective funds, are entitled under Saunders v Vautier to direct the trustees to transfer the shares to themselves, and such transfers are permitted under the company's articles; therefore, the trustees cannot proceed with the proposed sale to Tindle against their wishes.

Citation: [2012] EWHC 2232 (Ch)
Parties: Claimants: Gareth Hughes and others; Defendants: Susan Bourne and others; Defendants: Nonna Patricia Woodward and her children
Jurisdiction: England and Wales
Judgment Date: 27 July 2012
Procedural Posture: Part 8 Claim / Judgment on Urgent Application for Directions
Outcome: Application refused
Legal Topics: Trustee Powers, Beneficiary Rights, Rule in Saunders V Vautier, Share Transfer Restrictions, Family Trust Definition

Trusts Company Law Trustee Powers Beneficiary Rights Rule in Saunders V Vautier Share Transfer Restrictions Family Trust Definition

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Full judgment text Downloadable case file Legal principles 4 Authorities cited 8 Party arguments 2 Amounts and remedies 7

Parties

Gareth Hughes and others

Claimants

Susan Bourne and others

Defendants

Nonna Patricia Woodward and her children

Defendants

Procedural Posture

Part 8 Claim / Judgment on Urgent Application for Directions

Legal Issues

1 Whether beneficiaries of Bourne and Moss funds can require transfer of shares under Saunders v Vautier
2 Whether such transfers comply with company's articles of association

Ratio Decidendi

Court Disposition

Application refused

Orders

Court declines to approve trustees' proposal to sell shares to Tindle Newspapers Limited
Trustees cannot proceed with sale against wishes of Bourne and Moss families