Company Law Case StudyWatch
I hope someone may be able to help. I have been working on a case study and feel a bit stuck with one of the questions.
Could anyone be able to advise what would be the best points to include in my answer?
Below is the case study:
Two years ago, Soraya, an experienced investment manager, left her role with a major company and set up her own investment management business. Soraya called it Neon Fund Services Limited (“NFS”). She is its only director. It has two shareholders, Soraya and AR3 Capital LLP (“AR3”). NFS obtained all necessary authorisations to run an
investment management business offering services to retail clients. Soraya recently met with one of NFS’s clients, Egbert, who was considering investing £1,000,000 in a listed company, Bitgro Blockchain PLC. Egbert was worried that the investment would be too risky. Soraya sought to assure him, telling him, “You can take it from me personally, Egbert, that this is one of the safest investments around – I’ve got half of my own money invested in it. My advice would be to take the chance to invest now.” Last week, Bitgro Blockchain PLC went into liquidation, and Egbert has lost all of his £1,000,000 investment. It is clear that it was not a safe investment.
QUESTION: Can Egbert bring a claim against AR3 or Soraya in respect of the negligent advice he was given?
Thank you for your assistance!