Re Macro [1994] 2 BCLC 354

 Court: High Court

Facts: C owned shares in two property-owning companies managed by Thompsons, a property management agent. C sued Mr. Thompson, the director of the management company, alleging inadequate supervision and misconduct, such as charging excessive management fees.

Issue: Can long-term and repeated acts of mismanagement justify a claim for unfair prejudice under s.459 (now s.994 of the Companies Act 2006)?

Held: Arden J found that the prolonged and serious mismanagement by Thompsons was substantial enough to cause unfair prejudice to C’s interests. The repeated failure to address these issues warranted court intervention.

💡Leveluplaw: Prolonged and specific acts of mismanagement, particularly if ongoing, can establish a claim for unfair prejudice under s.994 of the Companies Act 2006, demonstrating that persistent issues can warrant court intervention even if not every decision causes significant financial loss.