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Beware Vengeful Shareholders Warns Lawyer

With Tesco facing fresh legal action over its ongoing accounting scandal, a Manchester lawyer warns North West businesses that shareholders are increasingly on the look-out for ways of challenging mismanagement by their directors.

A claim being brought against the supermarket by a group of investors claiming to have lost £150m due to the 2014 accounting irregularities scandal may have been strengthened by the half-year figures released by Tesco today which show profits down by more than a quarter.

John Flint, a partner in Clarke Willmott’s Manchester-based commercial litigation team, said: “Shareholders should be encouraged to challenge and scrutinise board decisions to ensure that the board operates effectively, and directors need to be aware of the increasing risks posed by emboldened shareholders looking for redress when things go wrong.

With a background which includes one of the largest shareholder disputes to ever come before the UK Courts, John Flint said: “To avoid potentially costly mistakes it is crucial for anyone involved in complex claims like this one to ensure their legal advice comes from a recognised specialist in the field.”

This was posted in Bdaily's Members' News section by Nicki Sampson .