Merethe Færch successful in legal action involving Færch shares

The Danish Eastern High Court has ruled that Merethe Færch is not to pay more than DKK 200 million to her mother Tineke Færch in a legal action about the value of the shares in Færch Holding A/S. Plesner assisted Merethe Færch in the legal action.

On 9 November 2015 the Danish Eastern High Court passed its judgment in a legal action about the transfer of class A shares in Færch Holding A/S from Tineke Færch to her daughter Merethe Færch.

The District Court found for Merethe Færch in May 2014 and in the appeal proceedings the High Court has now upheld the District Court's judgment.

Tineke Færch had claimed that Merethe Færch was to pay almost DKK 275 million, the equivalent of the value of the shares and dividend etc. The original purchase price of almost DKK 60 million was to be deducted from such amount.

Tineke Færch was of the opinion that the share transfer agreement was invalid under sections 30, 33 and 36 of the Danish Contracts Act. The claim was that partly Merethe Færch was to have provided incorrect information and partly had failed to disclose crucial knowledge about a future increase in value in connection with a subsequent sale of shares in Skandinavisk Tobakskompani to British American Tobacco.

Tineke Færch also claimed that Merethe Færch had breached the agreement because Merethe Færch had not fulfilled a condition that the shares were to be fully separate property if she married.

The High Court ruled that it had not been proved during the proceedings that there had been circumstances that could result in the invalidity of the transfer agreement. The High Court also found that the issue of the fully separate property in Merethe Færch's marriage contract was not sufficient basis for terminating for breach the agreement on the transfer of Tineke Færch's class A shares.

In the judgment passed by the District Court Tineke Færch was to pay Merethe Færch DKK 12 million in legal costs. The High Court fixed the legal cost amount in respect of both the District Court and the High Court to be DKK 5 million.

Attorney and Plesner Partner Peter Schradieck represented Merethe Færch in the legal action.

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