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Derivative actions and LLPs (Homes for England v Nick Sellman (Holdings) Ltd)

Published on: 24 April 2020
Published by: LexisPSL
  • Derivative actions and LLPs (Homes for England v Nick Sellman (Holdings) Ltd)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details

Article summary

Dispute Resolution analysis: This analysis examines the means by which a derivative claim can be brought on behalf of a Limited Liability Partnership (LLP). In particular, it addressed whether the test for continuing a derivative action in such context is that pursuant to the common law or, as had been common ground at first instance, whether section 263 of the Companies Act 2006 (CA 2006) should be applied. The court held that the common law test was applicable and that the statutory test does not apply to derivative claims pursued on behalf of LLPs. In addition, the procedural point that arose, concerning the taking of such a new point on an appeal, was considered before the appeal was allowed. Written by James Davies, barrister and mediator, at New Square Chambers. or take a trial to read the full analysis.

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