ParOS Plc v Worldlink Group PLC

The Deputy Judge (Jonathan Hirst QC) held that a break fee in heads of terms for the reverse takeover of a public limited company constituted unlawful financial assistance for the purposes of s.151 of the Companies Act 1985, rendering it unenforceable.  However, the break fee ceased to be unenforceable when the parties subsequently changed the structure of the proposed takeover to an acquisition of the public limited company's assets rather than its shares. 

Tom Richards appeared for the Claimant.