(i)Citing decided cases, state and describe the characteristics of a 'derivative action.' (ii) Explain the disadvantages to a minority shareholder in bringing a derivative...

      

(i)Citing decided cases, state and describe the characteristics of a 'derivative action.'

(ii) Explain the disadvantages to a minority shareholder in bringing a derivative action.

  

Answers


Martin
(a)
- 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. Newman Industries Ltd.

- Right to institute a derivative action in a matter of grace.

- It is controlled by the plaintiff.

- There must be a dispute between a member (s) of the company and those in control of its affairs.

-The company must be joined as a co-defendant to enable it enforce its rights EstamcoLtd. V. Greater London Council, Spokes V. The Grosvenor and Another
marto answered the question on February 7, 2019 at 05:11


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