Judgment Date: 14 Jun 2011
John Dagnall appeared for William Harris (“Harris”) who set up a joint-venture with Richard Jones (“Jones”) called Zetnet Limited (“Zetnet”) each holding one share (50% each). Harris transferred his one share to Jones who executed an express declaration of trust in favour of Harris and a stock-transfer form back to Harris. In 2007 Jones and others effected a series of transactions without informing Harris by which they lent £70,000 to Zetnet and reconstructed the shareholding with Harris’ share supposedly amounting to 0.1% of the total, Jones having 40% and others having 59.9%. In 2008 the entire shareholding was sold for a net £252,000. Jones asserted that Harris was left with 0.1% i.e. £252 (it having turned out that a rebate on the purchase price, had in fact been funded by solicitors). Harris asserted breach of trust and company unfair prejudice.