ARTICLE
14 August 2024

Speed Is Of The Essence When It Comes To Share Registers

DL
Druces LLP

Contributor

Druces, founded in 1767, is a distinguished City of London law firm with over 250 years of experience. The firm provides specialized legal services to public and privately-owned businesses, financial institutions, and high-net-worth individuals across diverse sectors. Druces excels in corporate and capital markets, banking and finance, private wealth, dispute resolution, and real estate law. Known for its international expertise, Druces was a founding member of the Alliance of Business Lawyers, offering robust cross-border legal services. The firm's capital markets practice, particularly strong in the natural resources sector, has garnered a Top 3 ranking for AIM clients in this area. Druces has received numerous accolades, including awards from Citywealth and Wealth Briefing, and consistent recognition in leading legal directories like Legal 500 and Chambers.
The Court of Appeal in Bland v Keegan [2024] EWCA Civ 934 upheld that a company's register of members is conclusive, even if a member was fraudulently removed. Liquidators can rely on this register for validating resolutions unless rectified by a court order.
United Kingdom Litigation, Mediation & Arbitration
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In this article, written by Hannah Pope, provides an insightful analysis of the recent case  where the Court of Appeal addressed the implications of fraudulent removal from a company's register of members.

The recent case of Bland v Keegan [2024] EWCA Civ 934, saw the Court of Appeal consider the status of an individual who had been fraudulently removed from the register of members of a company.

Despite the removal of the appellant's name from the register of members of the company being as a result of a fraudulently executed stock transfer form, the High Court in this case determined that the register of members was conclusive as to the identity of the members of the Company at any particular point in time and, therefore, a written resolution signed by the transferee, appointing joint liquidators, was valid passed.

The subsequent appeal was dismissed by the Court of Appeal, whose decision confirms that liquidators can take the members of a company to be those shown on its register, unless and until rectified pursuant to a court order. This general principle applies for the purpose of determining the validity of members' resolutions, even where a member's name has been wrongly removed from the register as a result of forgery or fraud.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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