Company Law: The Law Commission's 1997 report Shareholder Remedies (LC246) discussed in detail the reasoning behind creating (and including in the legislation that became the Companies Act 2006) Custom Essay

[A] new derivative procedure with more modern, flexible and accessible criteria for determining whether a shareholder can pursue the action.

(LC246 at 6-15 available at https://www.lawcom.gov.uk/docs/lc246.pdf )

What resulted was the statutory derivative claim as set out in Part 11 of the Act. The provisions of Part 11 set many hurdles for a claimant to clear before the court can or will give leave for the claim to proceed. S 263 (3) states a list of items that the court must take into account �[i]n considering whether to give permission (or leave) to continue a claim�. Then, at s 263 (4), states that �[i]n considering whether to give permission (or leave) the court shall have particular regard to any evidence before it as to the views of members of the company who have no personal interest, direct or indirect, in the matter.�

Evaluate the significance of the contents and order of the list in CA 2006 s 263 (3), and of the segregation of s 263 (4) from the list. You should consider the common law background to the elements in the list, and comment on what you believe the commentators (including the Law Commission) thought would be achieved through the inclusion of the elements of these two subsections in this form.

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