Derivative Proceedings 0.0 / 5 ? LawBusiness EntitiesUniversityOther Created by: mellonCreated on: 28-04-14 21:49 What sections? s265-9 1 of 10 What is a derivative action? Shareholder gets leave to bring action IN THE NAME OF THE COMPANY to sue directors for breach of duty to company 2 of 10 What acts of the director are included? Actual or proposed acts or omissions including negligence, default, breach of duty or trust 3 of 10 What do you need to bring action? Leave. ex parte and inter partes 4 of 10 What test is used for leave? Wishart. Need to show some evidence that could lead you to win but don't need to prove you will win 5 of 10 What factors are taken into consideration? Future/past conduct, shareholder's good faith, if there was authorisation or ratification, promotion of the success of the company 6 of 10 What happens in regards to expenses? You can seek indemnity from the company 7 of 10 What happens if shareholder's loss is the same as the company? The shareholder cannot claim as it is simply a reflection of the company's losses 8 of 10 Whose existing proceeding can the shareholder take over? An action raised by C or by another shareholder 9 of 10 Why would a shareholder take over proceedings? The original raiser has been slow in prosecution, it is appropriate to do so or if their conduct is an abuse of powers 10 of 10
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