Eleanor Davies considers the situation where shares are gone upon winding up

What can you do if you think the sole director of the company you have a shareholding in has given away all its assets? Is a just and equitable winding up justifiable where there is uncertainty as to a liquidator’s claims and the company’s assets? Can all breaches of director’s duties be ratified?

The recent Jersey Royal Court judgment in Re Greyhound Electromechanical Limited [2021] JRC 249 explores all these questions, and more, in a case involving director misbehaviour and shareholder acquiescence.

The facts were simple. They involved an investment through a Jersey company in a Qatari steel business, jointly owned with a Qatari local business partner. The key transaction was the giving away of the ...

Eleanor Davies
Midland Chambers

This article is part of a subscription-based access, to continue reading, please contact your library