Derivative Claim Flashcards
(5 cards)
1
Q
What is a derivative claim?
A
Where a minority shareholder can bring a claim in a representative capacity for a wrong done to the company. this is a company remedy
2
Q
What can Emily recover?
A
Any expenses incurred making the claim
3
Q
Who can Emily take to court?
A
Anyone - even being passive is enough
4
Q
What must Emily do?
A
Obtain permission from the court to proceed with the action
5
Q
Why may the court dismiss Emily?
A
- if the offence has not yet taken place
- if the act or omission was authorised by the company before it occurred, or has been ratified since
