Bringing, or intervening in, proceedings on behalf of a company

In force

(1)

A person may bring proceedings on behalf of a company, or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for those proceedings, or for a particular step in those proceedings (for example, compromising or settling them), if:

(a)

the person is:

(i)

a member, former member, or person entitled to be registered as a member, of the company or of a related body corporate; or

(ii)

an officer or former officer of the company; and

(b)

the person is acting with leave granted under section 237.

(2)

Proceedings brought on behalf of a company must be brought in the company’s name.

(3)

The right of a person at general law to bring, or intervene in, proceedings on behalf of a company is abolished.

Note 1:

For the right to inspect company books, see subsections 247A(3) to (6).

Note 2:

For the requirements to disclose proceedings and leave applications in the annual directors’ report, see subsections 300(14) and (15).

Note 3:

This section does not prevent a person bringing, or intervening in, proceedings on their own behalf in respect of a personal right.

This Act’s bill:Explanatory memorandum Second reading speech

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236 Bringing, or intervening in, proceedings on behalf of a company