England and Wales: Unfair prejudice: deadlock and the company's affairs

S. 994 of the Companies Act (2006) – formerly S. 459 of the 1985 Act – has been considered in Hawkes v Cuddy [2007] EWHC 2999 (Ch). The trial judge held that there was no absolute rule that the affairs of one company could not constitute the affairs of another for the purposes of S. 994. His Lordship also accepted that relief could be granted under S. 994 where there is a breakdown in trust and confidence coupled with deadlock, the result of which is that the company cannot be run as initially contemplated.