| Commentary

115 Statutory derivative action

| Commentary

115 Statutory derivative action

The Companies Act 2006 includes a statutory derivative action which the shareholder may use as an alternative to a personal action or a petition for unfair prejudice. The remedy is not intended to replace the rule in Foss v Harbottle1, but instead reflects the recommendation of the Law Commission that there should be a ‘new derivative procedure with more modern, flexible and accessible criteria for determining whether a shareholder can pursue an action’2.

The Act sets out a two-stage procedure for a shareholder to bring a derivative claim the main aim of which appears to be the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial