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Heron International Ltd v Lord Grade [1983] BCLC 244

By Oxbridge Law TeamUpdated 04/01/2024 07:12

Judgement for the case Heron International Ltd v Lord Grade

Table Of Contents

  • Were two takeover bids for a company; board of directors accepted lower bid and was able to take action to enforce this choice on shareholders.

  • Shareholders sued for loss in value of shares.

Held

  • Company’s loss was distinct from that of shareholders:

    1. Company’s assets were harmed as it was unclear that the relevant regulator would allow lower bidder to operate in that industry

    2. Shareholder’s assets were harmed as they were unable to accept a higher offer for their shares

  • Thus no reflective loss principle does not apply.

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Company law Notes
805 total pages
1068 purchased

Company law notes fully updated for recent exams in the UK. These notes...