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Derivative Action in United Kingdom

Definition of Derivative Action

In accordance with the work A Dictionary of Law, this is a description of Derivative Action : Civil proceedings brought by a minority of company members in their own names seeking a remedy for the company in respect of a wrong done to it. Such proceedings are exceptional; usually an action should be brought by the company (the injured party) in its own name. A derivative action will only be permitted when a serious wrong to the company is involved, which cannot be ratified by an ordinary resolution of company members (e.g. an *ultra vires or illegal act or a case of *fraud on the minority) and the majority of members will not sanction an action in the company’s name.

Compare representative action.

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(2015, 02). Derivative Action lawi.org.uk Retrieved 07, 2021, from https://lawi.org.uk/derivative-action/

02 2015. 07 2021 <https://lawi.org.uk/derivative-action/>

"Derivative Action" lawi.org.uk. lawi.org.uk, 02 2015. Web. 07 2021. <https://lawi.org.uk/derivative-action/>

"Derivative Action" lawi.org.uk. 02, 2015. Accesed 07 2021. https://lawi.org.uk/derivative-action/

Agostino Von Hassell, 'Derivative Action' (lawi.org.uk 2015) <https://lawi.org.uk/derivative-action/> accesed 2021 July 29

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Schema Summary

  • Article Name: Derivative Action
  • Author: Agostino Von Hassell
  • Description: Definition of Derivative Action In accordance with the work A Dictionary of Law, this is a description of Derivative Action [...]

This entry was last updated: February 25, 2015

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