Mohammad Reza Paseban; Mojtaba Jahanian
Volume 2, Issue 4 , December 2013, , Pages 85-108
Abstract
AbstractDerivative action is an action filed by shareholders against corporatedirectors in order to recover corporate’s rights. This mechanism is set up tohave the directors answerable for their failure in carrying out their duties.Prior to the CA 2006, Foss v. Horbottle rule deprived shareholders ...
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AbstractDerivative action is an action filed by shareholders against corporatedirectors in order to recover corporate’s rights. This mechanism is set up tohave the directors answerable for their failure in carrying out their duties.Prior to the CA 2006, Foss v. Horbottle rule deprived shareholders of takingany action against directors but in exceptional cases. Acknowledging theright of filing derivative action and how to apply it, as shareholders’ rights,for the first time the Act 2006 extended the circumstances in which such aright may be claimed.In Iranian Law, section 276 of the Amendment to the Commercial Act1347 refers to possibility of filing a derivative action. The same is providedvastly in the Bill 1384 in section 473. Regarding new development of legalsystems in this area particularly in English Law, providing new provisionsseems to be a necessity.
