Can minority shareholders sue the directors of a company in which they are a member?
British Columbia, Canada
The following excerpt is from Hoole v. Advani, 1996 CanLII 1392 (BC SC):
25 In Foss v. Harbottle, the minority shareholders were prevented from suing directors of the corporation of which they were members for a wrong they alleged the directors did the company. It appears the rule prevents, in certain circumstances, minority shareholders from suing, on behalf of the company, the directors of the company in which they are shareholders. However, given the exception discussed above, those same shareholders may sue the directors for damage they incurred personally as a result of their "personal and individual rights of membership" being "invaded".
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