Houldsworth Village Management Company Ltd v Barton

Houldsworth Village Management Company Ltd v Barton

The defendant's stated purpose of seeking to contact fellow members to call a general meeting and propose resolutions to remove and replace the directors and managing agent is a proper purpose under section 116 and 117 of the Companies Act 2006. The claimant failed to discharge the burden of proving that the request was for an improper purpose. The court accepted the defendant's undertaking to use the register solely for the stated purpose.

Parties
Claimant: Houldsworth Village Management Company Limited; Defendant: Keith Barton
Jurisdiction
England and Wales
Judgment Date
10 October 2019
Procedural Posture
Part 8 Claim / Substantive Hearing and Judgment
Outcome
Claim dismissed
Legal Topics
Inspection of Register of Members, Proper Purpose Test, Shareholder Rights, Section 116 and 117 Companies Act 2006
Company Law Inspection of Register of Members Proper Purpose Test Shareholder Rights Section 116 and 117 Companies Act 2006

Case Brief

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Parties

Houldsworth Village Management Company Limited

Claimant

Keith Barton

Defendant

Procedural Posture

Part 8 Claim / Substantive Hearing and Judgment

Legal Issues

  1. 1 Whether the defendant's request to inspect the register of members was for a proper purpose under section 116 and 117 of the Companies Act 2006
  2. 2 Whether the claimant company discharged the burden of proving the request was for an improper purpose

Ratio Decidendi

The defendant's stated purpose of seeking to contact fellow members to call a general meeting and propose resolutions to remove and replace the directors and managing agent is a proper purpose under section 116 and 117 of the Companies Act 2006. The claimant failed to discharge the burden of proving that the request was for an improper purpose. The court accepted the defendant's undertaking to use the register solely for the stated purpose.

Court Disposition

Claim dismissed

Orders

  • The claimant's application is dismissed.
  • The claimant must comply with the defendant's request to inspect the register of members immediately pursuant to section 117(5) of the Companies Act 2006.