Franbar Holdings Ltd v Patel and others – WLR Daily

Posted July 4th, 2008 in company directors, derivative claims, law reports, shareholders by sally

Franbar Holdings Ltd v Patel and others [2008] EWHC 1534 (Ch); [2008] WLR (D) 220

Where the question of ratification arose in the context of an application to continue a derivative claim, under s 261 of the Companies Act 2006, the court should ask itself whether the ratification had the effect that the claimant was being improperly prevented from bringing the claim on behalf of the company. That also applied where the connected person provisions in s 239 were not satisfied but there was still actual wrongdoer control by which there had been a diversion of assets to persons associated with the wrongdoer, albeit not connected in the sense provided by s 239(4).”

WLR Daily, 3rd July 2008


Please note once a case has been fully reported in one of the ICLR series the corresponding WLR Daily summary is removed.