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From garage to unicorn – Employment law lessons for scaling tech teams
Catherine Bourne
As alluded to in our recent article ‘Privilege in shareholder disputes – is change afoot?’, the eagerly awaited judgment of Aabar Holdings S.À.R.L v Glencore PLC has provided fresh judicial insight on the validity of the shareholder principle.
Although the shareholder principle has existed for over 135 years, remarkably the High Court has now concluded that the principle is ‘unjustifiable’ and ‘should no longer be applied’.
Officeholders often come into possession of various categories of documents and information over which legal professional privilege (in one of its many guises) may be asserted.
Legal professional privilege (LPP) is a fundamental principle of justice and exists to protect certain categories of communication between lawyers, their clients or a third party from being disclosed to the opposing party and the court.
When solicitors are sued in their professional capacity, an important question arises as to whether documentation relevant to the claim remains subject to legal professional privilege.
For over a century, it has been a well-established rule that a company cannot claim legal privilege against its own shareholders (Woodhouse & Co. Ltd v Woodhouse). This grants shareholders the right to access legal advice obtained by the company concerning its affairs. However, there is a recognised exception to this rule: if the legal advice pertains to actual or anticipated litigation between the company and the shareholder, the company can claim privilege.
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