- Derek FrenchDerek FrenchFreelance editor and writer in business and legal publishing for over 30 years
This chapter considers the remedies available when maladministration occurs, with emphasis on the existence of the company as a separate person. It examines circumstances where a wrong has been done to the company or to individual members, focusing on the proper claimant principle established in Foss v Harbottle (1843) 2 Hare 461, and the possible action that can be taken against company officers who have committed a wrong. It also explains the causes for which a member can file derivative claims; the right of a member to petition the court for relief under the Companies Act 2006 (CA 2006), part 30 (ss 994 to 999); members’ petition for winding up; the irregularity principle; and when the Secretary of State can intervene in maladministration cases. The chapter cites relevant legislation (Companies Act 1985, Insolvency Act 1986 and CA 2006) and a number of particularly significant court cases.