Assetco Plc v Shannon

Assetco Plc v Shannon

The balance of justice comes down firmly in favour of granting the injunction sought, as the risk of injustice to the Company if the placement does not proceed and it is placed into administration outweighs the risk to Mr Shannon, especially given his conduct consistent with the undertaking and the lack of certainty in alternative funding options.

Parties
Claimant: AssetCo plc; Defendant: Marcus John Shannon
Jurisdiction
England and Wales
Judgment Date
21 March 2011
Procedural Posture
Civil (injunction Application) / Interim Application for Mandatory Injunction
Outcome
Interim mandatory injunction granted
Legal Topics
Mandatory Injunction, Estoppel, Shareholder Undertakings, Equity Placement, Winding Up Petitions
Company Law Insolvency Law Mandatory Injunction Estoppel Shareholder Undertakings Equity Placement Winding Up Petitions

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 2 Authorities cited 4 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

AssetCo plc

Claimant

Marcus John Shannon

Defendant

Procedural Posture

Civil (injunction Application) / Interim Application for Mandatory Injunction

Legal Issues

  1. 1 Whether the court should grant an interim mandatory injunction compelling Mr Shannon to vote in favour of the equity placement
  2. 2 Whether Mr Shannon is estopped from resiling from his undertaking to vote in favour of the placement
  3. 3 Whether the deed of undertaking is binding despite alleged formal deficiencies

Ratio Decidendi

The balance of justice comes down firmly in favour of granting the injunction sought, as the risk of injustice to the Company if the placement does not proceed and it is placed into administration outweighs the risk to Mr Shannon, especially given his conduct consistent with the undertaking and the lack of certainty in alternative funding options.

Court Disposition

Interim mandatory injunction granted

Orders

  • Mr Shannon is ordered to vote in favour of the equity placement at the adjourned general meeting.