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Shareholder Dispute

The shareholders in an operator of leading night-life entertainment venues had a major falling out about the conduct of the affairs of the group. The Respondent’s longstanding legal advisers engaged our Forensic Services team to provide forensic accountant expert witness services in an unfair prejudice claim arising from the dispute and pursuant to section 994 of the Companies Act 2006.

The remit to assist the Court was to provide expert evidence on the issue of the value of the Petitioner’s shareholding in the deemed group of companies. This was subject to the Civil Procedure Rules and the extensive detailed requirements of the applicable Order (and preceding Judgment) for the basis of the valuation for compensatory purposes. The secondary remit was to assist the client and their legal team by way of forensic accounting consultancy services.

Our work product demonstrated that the valuation amount claimed by the Applicant, and supported by their expert accountant, was materially overstated. The parties successfully achieved a settlement following negotiations after the Meeting of Experts and the Joint Statement stages had been completed. This avoided the need for a trial and the uncertainties and additional costs involved. The resulting settled valuation was a small fraction of the amount claimed by the Applicant.

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