Permission to continue with a derivative action under Section 261 of the Companies Act 2006 has been granted for the first time in England and Wales.
A derivative claim is an action brought by a shareholder seeking relief on the company’s behalf in respect of a cause of action vested in the company. In order for a derivative claim to proceed, the member seeking to pursue the claim must have permission from the court. Permission to proceed must be refused in certain circumstances and the court must also take certain matters into account in deciding whether to give permission. Until now, permission to proceed has not been granted in relation to any company incorporated in England and Wales since the relevant provisions came into force on 1 October 2007 (although permission was granted in one Scottish case).
See Kiani v Cooper & Others (2010).
