Companies Act 1985

Valid from 16/02/2001

F1 347J Costs of shareholder action. E+W+S

(1) This section applies in relation to proceedings brought under section 347I by an authorised group of members of a company (“the group”).

(2) The group may apply to the court for an order directing the company to indemnify the group in respect of costs incurred or to be incurred by the group in connection with the proceedings; and on such an application the court may make such an order on such terms as it thinks fit.

(3) The group shall not be entitled to be paid any such costs out of the assets of the company except by virtue of such an order.

(4) If—

(a) the company is awarded costs in connection with the proceedings or it is agreed that costs incurred by the company in connection with the proceedings should be paid by any defendant, and

(b) no order has been made with respect to the proceedings under subsection (2),

the costs shall be paid to the group.

(5) If—

(a) any defendant is awarded costs in connection with the proceedings or it is agreed that any defendant should be paid costs incurred by him in connection with the proceedings, and

(b) no order has been made with respect to the proceedings under subsection (2),

the costs shall be paid by the group.

(6) In the application of this section to Scotland references to costs are to expenses and references to any defendant are to any defender.

Textual Amendments

F1 Pt. XA (ss. 347A-347K) inserted (16.2.2001) by 2000 c. 41, s. 139, Sch. 19 (with s. 156(6), Sch. 3 para. 12); S.I. 2001/222, art. 2, Sch. 1 Pt. I (subject to transitional provisions in Sch. 1 Pt. II)