Summary
The High Court allowed a claim to rectify two share agreements to increase the number of shares transferred by them, so that the entrepreneurs’ relief conditions could be satisfied on a subsequent disposal of the shares.
Background
The claimant trustees of a settlement (the ‘1968 settlement’) entered into two agreements to sell to each of the two defendants 25,000 shares in a company for £500,000. The defendants were also life tenants of the 1968 settlement and another settlement (the ‘1987 settlement’), and were the settlor’s grandchildren.
Before the agreements were entered into, the majority of the company’s shares (1,200,000 in total) were beneficially owned by the 1968 settlement (600,000 shares), the 1987 settlement (300,000 shares) and the settlor (300,000 shares). These were 'A' ordinary shares with a
