The Queensland Court of Appeal allowed the appeal and granted leave for a statutory derivative action under ss 236-237 of the Corporations Act 2001 (Cth), setting aside the primary judge's dismissal of the application. The Court considered the statutory criteria for granting leave to bring proceedings in a company's name, including whether the applicant was acting in good faith, whether there was a serious question to be tried, and whether it was in the best interests of the company that the action be brought, applying the fraud on the company exception to the rule in Foss v Harbottle in the context of the modern statutory regime.
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