Wilton UK Ltd & Anor v Shuttleworth & Ors [2018] EWHC 911 (Ch) (01 May 2018)

Wilton UK Ltd & Anor v Shuttleworth & Ors [2018] EWHC 911 (Ch) (01 May 2018)

Permission to continue the derivative claim is granted as the claim is substantial, not weak, and not clearly precluded by authorisation, ratification, or alternative remedy. Retrospective permission is also granted to validate service of the claim form and particulars of claim, as the procedural errors do not justify dismissal and the statutory and procedural requirements are satisfied.

Citation
[2018] EWHC 911 (Ch)
Parties
Claimant: Wilton UK Limited; Defendant: John Michael Shuttleworth; Defendant: Graham Smith; Defendant: Harry James Banks; Defendant: The Banks Group Limited; Defendant: Banks Mount Oswald Limited
Jurisdiction
England and Wales
Judgment Date
01 May 2018
Procedural Posture
Derivative Claim (companies Act 2006, Part 11, Ch 1) / Application for Permission to Continue Derivative Proceedings and for Retrospective Validation of Procedural Steps
Outcome
Permission granted to continue derivative proceedings; retrospective permission granted to validate service of claim form and particulars of claim.
Legal Topics
Derivative Actions, Directors' Duties, Breach of Fiduciary Duty, Company Litigation Procedure, Retrospective Validation of Service, Reflective Loss, Costs in Derivative Claims
Company Law Civil Procedure Derivative Actions Directors' Duties Breach of Fiduciary Duty Company Litigation Procedure Retrospective Validation of Service Reflective Loss +1 more

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Parties

Wilton UK Limited

Claimant

John Michael Shuttleworth

Defendant

Graham Smith

Defendant

Harry James Banks

Defendant

The Banks Group Limited

Defendant

Banks Mount Oswald Limited

Defendant

Procedural Posture

Derivative Claim (companies Act 2006, Part 11, Ch 1) / Application for Permission to Continue Derivative Proceedings and for Retrospective Validation of Procedural Steps

Legal Issues

  1. 1 Whether permission should be granted to continue derivative proceedings under s263 Companies Act 2006
  2. 2 Whether retrospective permission should be granted to validate service of claim form and particulars of claim without prior court permission
  3. 3 Whether the claim discloses a prima facie case for permission

Ratio Decidendi

Permission to continue the derivative claim is granted as the claim is substantial, not weak, and not clearly precluded by authorisation, ratification, or alternative remedy. Retrospective permission is also granted to validate service of the claim form and particulars of claim, as the procedural errors do not justify dismissal and the statutory and procedural requirements are satisfied.

Court Disposition

Permission granted to continue derivative proceedings; retrospective permission granted to validate service of claim form and particulars of claim.

Orders

  • Permission to continue derivative claim under s263 Companies Act 2006 granted.
  • Retrospective permission granted for service of claim form and particulars of claim.