shareholders of the proforma defendant. The suit is
misconceived and a derivative action is not maintainable. The suit could not
have been instituted ... jurisprudence, company actions are
divided into different groups:-
(a) Actions by the Company - for enforcement of Company's rights.
(b) Derivate actions
action. The frame of the suit makes it an apparent
derivative action brought by shareholders but the reliefs claimed are as personal
to the plaintiffs ... derivative action seeks to enforce a cause of action
which belongs to the company and not to the complainant personally.
Essentially, the action
nomine plaintiffs
derive their authority from the company itself and,
in the classical form of a derivative action in
company jurisprudence, the shareholders must ... nomine plaintiffs
derive their authority from the company itself and,
in the classical form of a derivative action in
company jurisprudence, the shareholders must
originally a
suit combining a derivative action with a partition suit but pursuant to the
order dated 6th April 2011 the suit has been bifurcated ... present suit (CS 12 of 2009) has become a pure derivative action while a
separate partition suit (C.S. No. 79 of 2011) was also
originally a
suit combining a derivative action with a partition suit but pursuant to the
order dated 6th April 2011 the suit has been bifurcated ... present suit (CS 12 of 2009) has become a pure derivative action while a
separate partition suit (C.S. No. 79 of 2011) was also
originally a
suit combining a derivative action with a partition suit but pursuant to the
order dated 6th April 2011 the suit has been bifurcated ... present suit (CS 12 of 2009) has become a pure derivative action while a
separate partition suit (C.S. No. 79 of 2011) was also
Thane, Maharashtra. The plaintiffs claim the present application to be a
derivative action for the benefit of the defendant no.15 which has been
described ... derivative action is contradictory to the recognised form and purpose of
such action. The aforesaid view was founded on the nature of a derivative
action
shares.
Hence, it cannot be said to be derivative action of the shareholders.
JUDGEMENT AND ORDER IMPUGNED
The learned Judge observed, the suit ... Hence the plaintiffs ought to have
restricted themselves to a derivative action. This would tantamount to
dealing with the asset of the Company without
holding in a company can bring either a representative or a derivative action. It
is like this. If it is a representative action the shareholder ... company.
The second type of action ( Section 398 ), the derivative action, is one taken by
the shareholders on behalf of the company on the footing
default mechanism, in company jurisprudence a derivative action
is permissible when the wrongdoers are themselves in control of the
company and may not permit ... nomine plaintiffs derive their authority from the company itself and,
in the classical form of a derivative action in company jurisprudence, the
shareholders must
