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Mondaq Business Briefing -Farrer & CoUnited Kingdom - English Courts Able To Move Quickly Where Shareholders' Interests Put At Risk By Management.

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| September 02, 2002 | COPYRIGHT 2002 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Mondaq.com)

Tarling -v- Mission Today Limited (Chancery Division, Rimer J 15 May 2002, unreported)

Section 371 Companies Act 1985 - Power of Court to order meeting

Facts

The Claimant, Mr Tarling, was a 60% shareholder in the Defendant, Mission Today Limited ("the company"), a company which transmitted religious television programmes through its satellite channel.

The company was in a perilous financial position.

There was only one director of the company (who was also a 10% shareholder) who appeared to be mismanaging the company's affairs. The director did not retain the confidence of the company's creditors, on whom the company depended for the transmission of its television programmes, and the creditors made it clear that unless new management was brought in and some arrangement was come to with them within a very short time period, they would cease the company's transmission of its programmes and the company would be forced into liquidation.

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