A decision under s 237 of the Corporations Act 2001 (Cth) whether to grant leave for a derivative action is an evaluative task, not a discretionary judgment, and accordingly House v The King principles do not apply; the appellate court must identify error rather than merely prefer a different view. Where concurrent derivative claims by opposing factions would result in the company maintaining inconsistent positions, and alternative proceedings (such as oppression under s 233, winding up, or replacement of trustee) are available, leave may properly be refused as not in the best interests of the company.
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