Fulham Football Club (1987) Ltd v Richards & Anor

Fulham Football Club (1987) Ltd v Richards & Anor

The statutory right to present an unfair prejudice petition under section 994 of the Companies Act 2006 is not inalienable and may be subject to an arbitration agreement. Where the dispute falls within the scope of a valid arbitration agreement and the relief sought does not bind third parties or offend public policy, the court must stay proceedings in favour of arbitration under section 9 of the Arbitration Act 1996.

Parties
Petitioner: Fulham Football Club (1987) Limited; 1st Respondent: Sir David Richards; 2nd Respondent: The Football Association Premier League Limited
Jurisdiction
England and Wales
Judgment Date
01 December 2010
Procedural Posture
Unfair Prejudice Petition / Arbitration Stay Application / First Instance Judgment on Stay Application
Outcome
Stay granted; proceedings stayed in favour of arbitration
Legal Topics
Unfair Prejudice Petitions, Arbitration Agreements, Jurisdiction of Arbitral Tribunals, Statutory Rights of Company Members
Company Law Arbitration Unfair Prejudice Petitions Arbitration Agreements Jurisdiction of Arbitral Tribunals Statutory Rights of Company Members

Case Brief

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Parties

Fulham Football Club (1987) Limited

Petitioner

Sir David Richards

1st Respondent

The Football Association Premier League Limited

2nd Respondent

Procedural Posture

Unfair Prejudice Petition / Arbitration Stay Application / First Instance Judgment on Stay Application

Legal Issues

  1. 1 Whether the statutory right to present an unfair prejudice petition under section 994 of the Companies Act 2006 can be removed or diminished by contract (arbitration agreement)
  2. 2 Whether the dispute falls within the scope of the arbitration agreements in the FAPL and FA Rules
  3. 3 Whether the relief sought is of a kind that can be granted by arbitrators

Ratio Decidendi

The statutory right to present an unfair prejudice petition under section 994 of the Companies Act 2006 is not inalienable and may be subject to an arbitration agreement. Where the dispute falls within the scope of a valid arbitration agreement and the relief sought does not bind third parties or offend public policy, the court must stay proceedings in favour of arbitration under section 9 of the Arbitration Act 1996.

Court Disposition

Stay granted; proceedings stayed in favour of arbitration

Orders

  • Stay of Fulham's unfair prejudice petition under section 9 of the Arbitration Act 1996 to allow arbitration under the FAPL and FA Rules
  • Encouragement to consolidate arbitrations and join interested clubs if Fulham consents