Recent Developments in the Shareholder’s Derivative Action: Hong Kong and Australian Perspectives
Hong Kong Law Journal, Vol. 39, p. 129, 2009
Posted: 13 Jul 2009
Date Written: 2009
In the last ten years, the common law rule in Foss v Harbottle concerning when a disgruntled shareholder could bring a 'derivative' action on behalf of the company has been put on a statutory basis in many jurisdictions, including Hong Kong. This article examines the most recent interpretations of the statutory remedy, the continuation of an inherent jurisdiction under which a shareholder may still sue, and the decision on the Hong Kong Court of Final Appeal in Waddington v Playmates which has defined the situations in which a 'multiple derivative action' may be brought. The spate of academic writing and case-law on the topic indicates its continuing importance. Indeed, as shareholder activism takes hold more generally, one may predict that the importance of the statutory derivative action will continue to increase.
Suggested Citation: Suggested Citation