Overview

Although most jurisdictions provide shareholders with statutory judicial protection against unfairly prejudicial conduct, shareholders will often seek to supplement such protection through a shareholders’ agreement providing for any disputes arising under the agreement to be arbitrated.

The recent UK decision of Fulham FC v Richards may now resolve some of the uncertainty of whether and in what circumstances a party to such an agreement can prevent a counterparty from pursuing an unfair prejudice application through the courts which, in contrast to arbitration, will be conducted in public. Norton Rose Singapore explains.