Destiny Investments (1993) Ltd and another v TH Holdings Ltd (formerly Tonstate (Hotels) Ltd) and others; TH Holdings Ltd (formerly Tonstate (Hotels) Ltd) and another v Destiny Investments (1993) Ltd and another

Company – Member. The Chancery Division ruled on an unfair prejudice petition, under s 994 of the Companies Act 2006, which arose in respect of the acquisition and management of three hotels in England and Wales. The petitioners had invested in the project and were the owners of the second respondent company, which was the vehicle used for the joint venture to acquire and manage some of the hotels and brought the petition in respect of the affairs of that company. The court ruled, among other things, that the way in which a loan, and the security in relation to it, had been dealt with (the latter of which had been at the insistence of a bank) had not given rise to a breach of the terms of the memoranda, which governed the relationship between the parties, had not been otherwise unconscionable or inequitable, and had not involved a breach of fiduciary duty. Accordingly, no unfair prejudice arose in respect of that loan and security. Further orders were made.

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