Authorising Derivative Actions on Unfair Prejudice Petitions

Abstract

Compares the two ways provided by the Companies Act 2006 s.260(2) by which a shareholder may bring a derivative action. Outlines the procedure under Pt 11, but focuses on the court's power to authorise the bringing of a derivative action pursuant to an unfair prejudice petition, by way of a remedy to give relief from the unfairly prejudicial conduct. Argues that there are inconsistencies between the two procedures, and proposes amendment of the Act. Discusses the Hong Kong Court of First Instance judgment in Re Shun Tak Holdings Ltd.