994Petition by company memberU.K.
(1)A member of a company may apply to the court by petition for an order under this Part on the ground—
(a)that the company's affairs are being or have been conducted in a manner that is unfairly prejudicial to the interests of members generally or of some part of its members (including at least himself), or
(b)that an actual or proposed act or omission of the company (including an act or omission on its behalf) is or would be so prejudicial.
[F1(1A)For the purposes of subsection (1)(a), a removal of the company's auditor from office—
(a)on grounds of divergence of opinions on accounting treatments or audit procedures, or
(b)on any other improper grounds,
shall be treated as being unfairly prejudicial to the interests of some part of the company's members.]
(2)The provisions of this Part apply to a person who is not a member of a company but to whom shares in the company have been transferred or transmitted by operation of law as they apply to a member of a company.
(3)In this section, and so far as applicable for the purposes of this section in the other provisions of this Part, “company” means—
(a)a company within the meaning of this Act, or
(b)a company that is not such a company but is a statutory water company within the meaning of the Statutory Water Companies Act 1991 (c. 58).
Textual Amendments
F1S. 994(1A) inserted (6.4.2008) by The Statutory Auditors and Third Country Auditors Regulations 2007 (S.I. 2007/3494), reg. 42(1) (with reg. 42(2))
Modifications etc. (not altering text)
C1Ss. 994-996 applied (with modifications) (1.10.2009) by The Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009 (S.I. 2009/1804), regs. 2, 48 (as amended (1.4.2013) by S.I. 2013/472, Sch. 2 para. 174)
Commencement Information
I1S. 994 wholly in force at 1.10.2007; s. 994 not in force at Royal Assent see s. 1300; s. 994 in force at 1.10.2007 by S.I. 2007/2194, art. 2(1)(j) (with saving in art. 12 and subject to transitional adaptations specified in Sch. 1 and with transitional provisions and savings in Sch. 3)