COVID-19: Derivative actions against directors
The economic damage resulting from the coronavirus-induced national lockdown has led to ‘life or death’ decision-making by directors. Nonetheless, directors’ actions are still vulnerable to scrutiny by shareholders, and a significant risk in a legal dispute is the derivative action. The statutory derivative action is enshrined in the UK Companies Act 2006, and while difficult to establish, offers a powerful tool that aggrieved shareholders can use against directors.
For further information please contact Barbara Creed, Partner, Stuart Nevin, Associate or Aine Hughes, Solicitor or a member the ALG Belfast Commercial Litigation and Dispute Resolution team.
Date published: 21 January 2021