Heron International Ltd v Lord Grade [1983] BCLC 244
Country:
United Kingdom
Reviewed By Oxbridge Law Team
Updated 2024-01-04 07:12:50 UTC
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:
Company’s assets were harmed as it was unclear that the relevant regulator would allow lower bidder to operate in that industry
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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