Heron International Ltd v Lord Grade [1983] BCLC 244

• 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.