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Dyment v Boyden

[2005] 1 WLR 792

Case summary last updated at 23/01/2020 16:03 by the Oxbridge Notes in-house law team.

Judgement for the case Dyment v Boyden

Partnership within a corporate shell was dissolved; one of three shareholders took the other two’s shareholdings, and other two took exclusive ownership of business premises which were leased to company for certain rent. Later, remaining shareholder claimed that rental value of property was much less, and that difference between what he was paying and rental value was unlawful financial assistance given by company. Held:
·       Is true that company acquiring the lease was a condition for dissolving of partnership.
·       However the company’s decision to enter into the lease was not undertaken ‘for the purpose’ of allowing C to acquire its shares
Ø  rather it took the lease in order to acquire the premises it needed to continue in business
Ø  and it paid an excessive rent because the owners of the freehold were in a position to demand it

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