Valid from 01/10/2007
266Requirement for leave and noticeU.K.
(1)Derivative proceedings may be raised by a member of a company only with the leave of the court.
(2)An application for leave must—
(a)specify the cause of action, and
(b)summarise the facts on which the derivative proceedings are to be based.
(3)If it appears to the court that the application and the evidence produced by the applicant in support of it do not disclose a prima facie case for granting it, the court—
(a)must refuse the application, and
(b)may make any consequential order it considers appropriate.
(4)If the application is not refused under subsection (3)—
(a)the applicant must serve the application on the company,
(b)the court—
(i)may make an order requiring evidence to be produced by the company, and
(ii)may adjourn the proceedings on the application to enable the evidence to be obtained, and
(c)the company is entitled to take part in the further proceedings on the application.
(5)On hearing the application, the court may—
(a)grant the application on such terms as it thinks fit,
(b)refuse the application, or
(c)adjourn the proceedings on the application and make such order as to further procedure 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)