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29-09-2015

Can a limited company bring a claim that it has been directly discriminated against where it suffers detrimental treatment because of the protected characteristic of someone with whom it is associated?

Yes it can.

Mr A set up a limited company as he approached retirement. He was a member of limited liability partnership (LLP) and due to retire at 62.

Having set up the limited company (of which he was the sole director) to take his place as a member of the LLP, he withdrew from membership.

The limited company, as a member of the LLP, was entitled to receive the profit share A would have received had he continued as a member, and for its part it agreed to supply the services of an appropriate fee-earner to the LLP. Though the parties expected that this would be A, there was no obligation that this should be the case.

Once A reached the age at which he would have been expected to retire under the LLP agreement, the LLP refused to accept his services and sought to terminate the company’s membership of the LLP. The limited company brought a claim on the basis that it was being discriminated against by reason of its association with A.

(See Tribunal report here)

 

This is intended for general information only and should not be considered as giving advice in relation to any individual case nor be taken as applying to any particular case. No liability is accepted for any such use of the information contained.

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