Section 260: Derivative claims

Companies Act 2006 · 2006 c. 46View on legislation.gov.uk

Part 11: Derivative claims and proceedings by members — Chapter 1: Derivative claims in England and Wales or Northern Ireland

A derivative claim may only be brought—

under this Chapter, or
in pursuance of an order of the court in proceedings under section 994 (proceedings for protection of members against unfair prejudice).

It is immaterial whether the cause of action arose before or after the person seeking to bring or continue the derivative claim became a member of the company.

For the purposes of this Chapter—

"director" includes a former director;
a shadow director is treated as a director; and
references to a member of a company include a person who is not a member but to whom shares in the company have been transferred or transmitted by operation of law.

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Reuse reviewed 21 August 2026 under Open Government Licence v3.0.