The statutory derivative action under ss 236-237 of the Corporations Act 2001 (Cth) cannot be used to cause an Australian parent company to bring proceedings to enforce rights belonging to a foreign subsidiary that is not registered under the Act. Section 236(3) abolishes the general law derivative action for companies registered under the Act, and this abolition extends to applications for leave to commence such actions. The reflective loss principle applies to equitable remedies, not merely common law damages, so that a shareholder (including a corporate shareholder) cannot recover for loss that merely reflects loss suffered by the company in which it holds shares.
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