Can only be instituted in circumstances in which there is fraud on the minority.
- The minority must discharge the heavy burden of proof i.e. the company is entitled to the remedy sought and that the company cannot itself sue.
- The minority shareholder has no legal right to bring a derivative action.
- The minority must not have participated in the wrongful act complained of
- Legal costs are only recoverable if the action is successful.
- The case may be struck off at the instance of the defendant.
marto answered the question on February 7, 2019 at 05:13
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