Does the rule in Foss v. Harbottle provide that shareholders of a corporation have a personal cause of action for wrong done to the corporation?
British Columbia, Canada
The following excerpt is from Harrison Hydro Project Inc. v. British Columbia (Environmental Appeal Board), 2018 BCCA 44 (CanLII):
The rule in Foss v. Harbottle provides that a shareholder of a corporation does not have a personal cause of action for a wrong done to the corporation; only the corporation may sue. In Watson, the rule was applied to limited partnerships. The relevant portions of the judgment in Watson were cited by Justice Newbury in Everest as follows:
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