| Commentary

69 Duties owed to individual shareholders

| Commentary

69 Duties owed to individual shareholders

Although directors’ general duties are owed to the company and not to any individual shareholder, an individual shareholder may be able to bring a derivative claim in some circumstances1. Traditionally, this rule was strictly applied even though, by their actions, the directors had obtained a profit at the shareholder’s expense2. The rule has not proved popular with the courts however, presumably because of its potential unfairness, and in some cases they have gone to ingenious lengths to avoid it3. More recently, the court has suggested that directors may

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