A derivative claim is brought by a shareholder of a company against a director when there appears to be evidence they have breached their duties under the Companies Act 2006.
In most cases, it is up to company directors to decide whether such claims can be taken out in the company name. A minority shareholder can only bring a derivative claim under exceptional circumstances, due to restrictions on what they can do.
The two most common cases where a minority shareholder can bring a derivative claim are:
- When the majority shareholders are unable to justify what has been done
- In cases where it would prove unfair not to allow the claim to be made - for example, where there have been allegations of fraud
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