An investor who already invested USD 1.3 million in a company sought to terminated the agreement and other remedies due to breach of representations and warranties and sought to attach temporary liens during the claim. The defendants argued, inter alia, that if there is a right of claim against them it is to the company.
The Court enabled the attachment of the liens and held that when the main damage is to the company and the damage to the shareholder is ancillary and derives from the damage to the company, the right of claim is of the company. However, a shareholder may claim personally if the damage is due to breach of a founders agreement or caused to a specific group of shareholders and is different than that caused to another. In this case the breach of the founders agreement and therefor the shareholder has a right of claim.