Commentary

118 Application for permission to continue an existing claim as a derivative claim

COMPANIES vol 10(1) Directors and Other Officers, Shareholders, Shares and Share Capital
| Commentary

118 Application for permission to continue an existing claim as a derivative claim

| Commentary

118 Application for permission to continue an existing claim as a derivative claim

The Companies Act 2006 contains provisions which seek to prevent a company launching a spoiling action by taking its own proceedings in relation to the alleged wrongdoing and then failing to prosecute the claim. Consequently, where a company has already itself brought a claim which could have been pursued as a derivative claim under the 2006 Act, a shareholder may apply to the court for permission to continue the claim as a derivative claim1. At the first stage the court must consider the application (together with the

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