UK Knowledge Collection | No 'shareholder rule', drip pricing, and AI in advertising

The Privy Council has decided that shareholders no longer have an automatic right to disclosure of a company's privileged documents, supporting the High Court's finding in Aabar v Glencore that the original proprietary justification for the "shareholder rule" was inconsistent with the proper analysis of a registered company as a separate legal entity from its shareholders. It also rejected the argument that the company-shareholder relationship could be said to attract joint interest privilege. Our Insight considers the impact of this decision.

The Competition and Markets Authority is consulting on draft guidance on the price transparency provisions of the Digital Markets, Competition and Consumers Act 2024 in respect of invitations to purchase. The guidance will be of interest to consumer-facing businesses: it provides numerous examples both of prohibited "drip pricing" practices (not all of which are straightforward), as well as ways to ensure compliance when presenting price information.

AI can offer significant benefits for advertising, such as cost efficiency and enhanced personalisation. But businesses should be mindful of the legal and ethical considerations to avoid misleading consumers. Our update on marketing law looks at the regulatory landscape for AI use in advertising and marketing, reviews recent guidance and provides practical tips.

Recent Insights

First business charged under UK corporate criminal offences for failure to prevent tax evasion

The landmark development highlights how businesses are at risk of prosecution for failing to prevent the facilitation of tax evasion under the Criminal Finances Act 2017 if they fail to implement and update proper procedures.
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Fraud, Asset Tracing and Enforcement Update

This edition includes updates on the cross-border enforcement of judgments, fraudulent trading, account of profits, the English court's ability to grant freezing orders on third parties out of the jurisdiction, and a rare order for cross-examination on an interim application.
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Privy Council follows English High Court in conclusively disposing of the 'shareholder rule' in legal privilege

The Judicial Committee of the Privy Council in Jardine v Oasis has ruled that the "shareholder rule" must be abandoned. The decision is to be treated as binding precedent in England and Wales.
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Marketinglaw Update

The latest edition of our round-up of ASA rulings and regulatory updates related to marketing and advertising.
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CMA provides further guidance on the 'drip pricing' provisions of the DMCCA

Consumer-facing businesses should consider responding to the consultation, which closes on 8 September.
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Events

Products Unpacked

10 September | One London Wall | 09:00-12:30
A seminar covering some of the principal changes coming to the product safety and compliance regime in the UK and EU, followed by a networking lunch at our London office.
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Future of Infrastructure 2025

24 September | IMechE | 16:00-20:00
A panel of industry leaders will provide insight and debate about how the infrastructure sector will develop over the next ten years and beyond. How is the industry gearing up for billions in planned investment and accelerated delivery programmes?
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When things go wrong: a legal survival guide

15 October | Thames Valley Office | 09:00 to 11:30
Join our experts to discuss how to map out and respond to commonly seen risk issues (including managing disgruntled investors and difficult board decisions, dealing with employee misconduct, fraud, early-stage litigation and real estate problems).
Learn what steps to take internally to protect your business, and the early indicators that you might want to involve legal and compliance specialists.
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