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Companies Act 2006, Section 262 is up to date with all changes known to be in force on or before 17 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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(1)This section applies where—
(a)a company has brought a claim, and
(b)the cause of action on which the claim is based could be pursued as a derivative claim under this Chapter.
(2)A member of the company may apply to the court for permission (in Northern Ireland, leave) to continue the claim as a derivative claim on the ground that—
(a)the manner in which the company commenced or continued the claim amounts to an abuse of the process of the court,
(b)the company has failed to prosecute the claim diligently, and
(c)it is appropriate for the member to continue the claim as a derivative claim.
(3)If it appears to the court that the application and the evidence filed by the applicant in support of it do not disclose a prima facie case for giving permission (or leave), the court—
(a)must dismiss the application, and
(b)may make any consequential order it considers appropriate.
(4)If the application is not dismissed under subsection (3), the court—
(a)may give directions as to the evidence to be provided by the company, and
(b)may adjourn the proceedings to enable the evidence to be obtained.
(5)On hearing the application, the court may—
(a)give permission (or leave) to continue the claim as a derivative claim on such terms as it thinks fit,
(b)refuse permission (or leave) and dismiss the application, or
(c)adjourn the proceedings on the application and give such directions as it thinks fit.
Modifications etc. (not altering text)
C1Ss. 260-269 modified (22.2.2008) by The Northern Rock plc Transfer Order 2008 (S.I. 2008/432), art. 17(1), Sch. para. 2(m)
C2Ss. 260-269 modified (8.00 a.m. on 29.9.2008) by the The Bradford & Bingley plc Transfer of Securities and Property etc. Order 2008 (S.I. 2008/2546), art. 13(1)(3), Sch. 1 para. 2(m)
C3Ss. 260-269 modified (9.30 a.m. on 7.10.2008) by The Heritable Bank plc Transfer of Certain Rights and Liabilities Order 2008 (S.I. 2008/2644), art. 26, Sch. 2 para. 2(m)
C4Ss. 260-269 modified (retrospective to 30.3.2009 at 8.00 a.m.) by The Amendments to Law (Resolution of Dunfermline Building Society) Order 2009 (S.I. 2009/814), arts. 1(2), 7, Sch. para. 2(m)
C5Ss. 260-269 modified (1.3.2016) by The NRAM plc (formerly Northern Rock plc) Consequential and Supplementary Provisions Order 2016 (S.I. 2016/114), arts. 1(1), 7(1), (3), Sch. para. 1(m)
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