Principle

COMPANY LAW — Corporate Litigation — Authority to Institute Action — Requirement for Board or Shareholder Resolution

Area of law
COMPANY LAW
Court
Supreme Court

A company can only sue through proper authorisation by board resolution or shareholder resolution. The action is a nullity without such authorisation. The rule is based on the principle in Foss v. Harbottle that the company is the proper plaintiff for wrongs done to it.…

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