C8C5C6Part 11Derivative claims and proceedings by members
Pt. 11 excluded (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), 6
Pts. 1-39 (except for Pt. 7 and ss. 662-669), 45-47 extended (12.5.2011) by The Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011 (S.I. 2011/1265), art. 5(1), Sch. 1 para. 2
Chapter 1Derivative claims in England and Wales or Northern Ireland
C4C7264C1C2C3Application for permission to continue derivative claim brought by another member
1
This section applies where a member of a company (“the claimant”)—
a
has brought a derivative claim,
b
has continued as a derivative claim a claim brought by the company, or
c
has continued a derivative claim under this section.
2
Another member of the company (“the applicant”) may apply to the court for permission (in Northern Ireland, leave) to continue the claim on the ground that—
a
the manner in which the proceedings have been commenced or continued by the claimant amounts to an abuse of the process of the court,
b
the claimant has failed to prosecute the claim diligently, and
c
it is appropriate for the applicant 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 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.
Pts. 1-39 modified (31.12.2020) by Regulation (EC) No. 2157/2001, Art. AAA1(3) (as inserted by The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1298), regs. 1, 97 (with regs. 140-145) (as amended by S.I. 2020/523, regs. 1(2), 5(a)-(f)); 2020 c. 1, Sch. 5 para. 1(1))