Citing decided cases, state and describe the characteristics of a derivative action.

      

Citing decided cases, state and describe the characteristics of a derivative action.

  

Answers


Martin

- This is an action instituted by a member in his name on behalf of the company to remedy a wrong done to the company.
- It is representative in character.
-Involves the violation of corporate rights. Prudential Assurance Co. Ltd V. NewmanIndustries Ltd.
-Right to institute a derivative action in a matter of grace.
- It is controlled by the plaintiff.

marto answered the question on February 6, 2019 at 11:04


Next: Briefly explain the multiplier and accelerator principles
Previous: Explain the disadvantages to a minority shareholder in bringing a derivative action.

View More CPA Company Law Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions