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Companies Act 2006

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Changes over time for: Section 370

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Point in time view as at 03/10/2022.

Changes to legislation:

Companies Act 2006, Section 370 is up to date with all changes known to be in force on or before 04 March 2025. 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. Help about Changes to Legislation

370Enforcement of directors' liabilities by shareholder actionU.K.

This section has no associated Explanatory Notes

(1)Any liability of a director under section 369 is enforceable—

(a)in the case of a liability of a director of a company to that company, by proceedings brought under this section in the name of the company by an authorised group of its members;

(b)in the case of a liability of a director of a holding company to a subsidiary, by proceedings brought under this section in the name of the subsidiary by—

(i)an authorised group of members of the subsidiary, or

(ii)an authorised group of members of the holding company.

(2)This is in addition to the right of the company to which the liability is owed to bring proceedings itself to enforce the liability.

(3)An “authorised group” of members of a company means—

(a)the holders of not less than 5% in nominal value of the company's issued share capital,

(b)if the company is not limited by shares, not less than 5% of its members, or

(c)not less than 50 of the company's members.

(4)The right to bring proceedings under this section is subject to the provisions of section 371.

(5)Nothing in this section affects any right of a member of a company to bring or continue proceedings under Part 11 (derivative claims or proceedings).

Modifications etc. (not altering text)

C1Ss. 362-379 applied (with modifications) (1.10.2009) by The Unregistered Companies Regulations 2009 (S.I. 2009/2436), regs. 3-5, Sch. 1 para. 9 (with transitional provisions and savings in regs. 7, 9, Sch. 2)

Commencement Information

I1S. 370 wholly in force at 1.11.2007; s. 370 not in force at Royal Assent see s. 1300; s. 370 in force at 1.10.2007 (E.W.S.) and at 1.11.2007 (N.I.) by S.I. 2007/2194, arts. 2(2), 3(1), (with saving in art. 12 and with transitional provisions and savings in Sch. 3)

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