What is the test for derivative actions against a company?
Nova Scotia, Canada
The following excerpt is from Bertram v Fundy Tidal Inc., 2018 NSSC 165 (CanLII):
The purpose of derivative actions is to allow shareholders to bring action on behalf of the company. These derivative actions counteract the rule in Foss v. Harbottle.
The claim must be for wrongs done to the corporation. Paraphrasing from Rea v. Wildeboer, 2015 ONCA 373, to prevent abuse of the power, legislation requires that shareholders who wish to bring an action must obtain leave of the court.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
What is the impact of a finding that a class action is not the preferable procedure for bringing an individual action? (Nova Scotia, Canada)
What is the difference between whether an employer is an agent of an insurance company or the agent of the insurance company? (Nova Scotia, Canada)
Can a shareholder of a company sue for damages against the company? (Nova Scotia, Canada)
What is the test for standing in a civil action? (Nova Scotia, Canada)
What is the current state of the law of limitations on discoverability rules in a personal injury action? (Nova Scotia, Canada)
Can a shareholder bring a personal action against the management of a corporation for failing to oversee or supervise management? (Nova Scotia, Canada)
What is the but for test in a personal injury action? (Nova Scotia, Canada)
What is the legal test for recovery of costs in a personal injury action? (Nova Scotia, Canada)
Can an applicant for an interim order for costs under s. 7(4) of the Companies Act, s.7(4), be impecunious? (Nova Scotia, Canada)
Is a shareholder's agreement valid to change the president of a company? (Nova Scotia, Canada)
