When derivative claims are added to existing proceedings in which the company is already a defendant, the company may remain as a defendant and s 236(2) does not require it to become a plaintiff. Company funds should not be used to defend what is essentially a shareholder dispute, subject to exceptions where the company's own interests are directly engaged (such as compulsory purchase orders or challenges to the validity of corporate actions). Where companies are permitted to participate as defendants in limited respects, separate legal representation from the controlling shareholders' solicitor should be required to manage conflicts of interest.
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