Zedra Trust Company (Jersey) Ltd v The Hut Group Ltd & Ors

Zedra Trust Company (Jersey) Ltd v The Hut Group Ltd & Ors

The petition is not an abuse of process as a concealed derivative claim; the losses claimed are not reflective of company loss; the allegations of bad faith and improper purpose are sufficiently pleaded; the relief sought is within the court's powers under section 996; and the non-joinder of all shareholders is not a ground for striking out the petition. The application to strike out is dismissed except for granting permission to serve a Rejoinder.

Parties
Petitioner: Zedra Trust Company (Jersey) Limited; Respondents: The Hut Group Limited & Others
Jurisdiction
England and Wales
Judgment Date
17 January 2020
Procedural Posture
Company/shareholder Petition / Application to Strike Out Petition or Parts Thereof
Outcome
Application dismissed except for permission to serve Rejoinder
Legal Topics
Unfair Prejudice, Derivative Claims, Reflective Loss, Directors' Duties, Shareholder Rights, Company Articles, Breach of Contract
Company Law Equity Unfair Prejudice Derivative Claims Reflective Loss Directors' Duties Shareholder Rights Company Articles +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 24 Party arguments 2
Sign in to unlock

Parties

Zedra Trust Company (Jersey) Limited

Petitioner

The Hut Group Limited & Others

Respondents

Procedural Posture

Company/shareholder Petition / Application to Strike Out Petition or Parts Thereof

Legal Issues

  1. 1 Whether the petition is an abuse of process as a concealed derivative claim
  2. 2 Whether parts of the petition should be struck out as claims for reflective loss
  3. 3 Whether allegations of bad faith and/or improper purpose are adequately pleaded

Ratio Decidendi

The petition is not an abuse of process as a concealed derivative claim; the losses claimed are not reflective of company loss; the allegations of bad faith and improper purpose are sufficiently pleaded; the relief sought is within the court's powers under section 996; and the non-joinder of all shareholders is not a ground for striking out the petition. The application to strike out is dismissed except for granting permission to serve a Rejoinder.

Court Disposition

Application dismissed except for permission to serve Rejoinder

Orders

  • Permission granted to serve Rejoinder
  • No parts of the petition struck out