DOCSLIB.ORG

Complete Thesis

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Complete Thesis University of Groningen A comparative study of shareholders' derivative actions. Li, Xiaoning IMPORTANT NOTE: You are advised to consult the publisher's version (publisher's PDF) if you wish to cite from it. Please check the document version below. Document Version Publisher's PDF, also known as Version of record Publication date: 2006 Link to publication in University of Groningen/UMCG research database Citation for published version (APA): Li, X. (2006). A comparative study of shareholders' derivative actions. Engeland, the United States, Germany and China. University of Groningen. Copyright Other than for strictly personal use, it is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license (like Creative Commons). The publication may also be distributed here under the terms of Article 25fa of the Dutch Copyright Act, indicated by the “Taverne” license. More information can be found on the University of Groningen website: https://www.rug.nl/library/open-access/self-archiving-pure/taverne- amendment. Take-down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim. Downloaded from the University of Groningen/UMCG research database (Pure): http://www.rug.nl/research/portal. For technical reasons the number of authors shown on this cover page is limited to 10 maximum. Download date: 11-10-2021 A COMPARATIVE STUDY OF SHAREHOLDERS' DERIVATIVE ACTIONS England, the United States, Germany and China A Comparative study of shareholders' derivative actions England, the United States, Germany and China Xiaoning Li Kluwer - Deventer - 2007 Dit boek werd als proefschrift door de auteur verdedigd aan de Rijksuniversiteit Groningen op 11 december 2006. ISBN 978-90-13-04391-4 © 2007, Xiaoning Li, Shanghai Aile rechten voorbehouden. Niets uit deze uitgave mag warden verveelvoudigd, opgeslagen in een geautomatiseerd gegevensbestand, of openbaar gemaakt, in enige vorm of op enige wijze, hetzij elektronisch, mechanisch, door fotokopieen, opnamen, of enige andere manier, zonder voorafgaande schriftelijke toestemming van de uitgever. Voor zover het maken van kopieen uit deze uitgave is toegestaan op grand van artikel 16h t/m 16m Auteurswet 1912 jo. het Besluit van 27 november 2002, Stb. 575, dient men de daarvoor verschul­ digde wettelijke vergoeding te voldoen aan de Stichting Reprorecht (Postbus 3051, 2130 KB Hoofddorp). Roewe! aan de totstandkoming van deze uitgave de uiterste zorg is besteed, aanvaarden de auteur(s), redacteur(en) en uitgever(s) geen aansprakelijkheid voor eventuele fouten en onvolkomenheden, noch voor gevolgen hiervan. Kluwer BV legt de gegevens van abonnees vast voor de uitvoering van de (abonnements)over­ eenkomst. De gegevens kunnen door Kluwer, of zorgvuldig geselecteerde derden, warden gebruikt om u te informeren over relevante producten en diensten. Indien u hier bezwaar tegen heeft, kunt u contact met ans opnemen. Op alle uitgaven van Kluwer zijn de algemene leveringsvoorwaarden van toepassing. Deze kunt u lezen op www.kluwer.nl of opvragen via telefoonnummer 0570-67 34 49. Preface On December 11, 2006 mrs. X. Li was awarded a Ph.D. cum laude by the Uni­ versity of Groningen (the Netherlands) for this thesis A Comparative study of shareholders' derivative actions, supervised by Professors dr. L. Timmerman and dr. M.L. Lennarts. It is with great pleasure that I present this Ph.D. dissertation in the series of the Institute for Company Law of the University of Groningen, the Netherlands. The main objective of the study of Xiaoning Li is to provide insight in the nature, ( dis )advantages and functioning of derivative shareholder litigation. In several countries derivative suits are a notable constraint on director mismanage­ ment. Derivative litigation by shareholders is an important issue in the ongoing debate on principles of corporate governance and protection of minority share­ holders. To prevent abuse, however, derivate suits are often limited by a variety of procedural and substantive restrictions. This study is comprised of six chapters. After a general introduction ( chapter 1), Xiaoning Li analyses the law of derivative actions in three Western countries: England (chapter 2), the United States (chapter 3) and Germany (chapter 4). Derivative suits in these countries have their own characteristic features. Chapter 5 studies the law of the People's Republic of China. This study illustrates that in the field of company law very important developments took place in the last years. As from January 1, 2006, a broadly amended new Company Law came into force, meeting the needs of China as a rising economic superpower. The development of derivative suits in China, which has a civil law tradition, is worth noting. In the final chapter ( chapter 6) Xiaoning Li concludes that the issue of how to strike a balance between corporate efficiency and protection for the company and its minority shareholders is key in derivative actions. This excellent study provides a thorough, comparative analysis of the techniques of derivative actions. I have no doubt this book will contribute to the better understanding of derivative litigation and that it will be welcomed by legal professionals and scholars all over the world as a valuable resource. Prof d1'. Jan Berend Wezeman Institute for Company Law of the University of Groningen, the Netherlands V ' ... no single technique of accountability (including market and legal remedies) is likely to be optimal under all circumstances. Each has its characteristic and well-known limitations, and, as a result, shareholders are best served by an overlapping system of protection.' (American Law Institute, Principles of Cmporate Governance: Analysis and Recommendations (II), St Paul, Minnesota: American Law Institute Publishers, 1994, part VII, chapter 1, Introductory Note, p. 5) 'The basic methodological principle of all comparative law is that of functionality. From this basic principle stem all the other rules which determine the choice of laws to compare, the scope of the undertaking, the creation of a system of comparative law, and so on. Incomparables cannot usefully be compared, and in law the only things which are comparable are those which fulfil the same function.' (K. Zweigert & H. Kotz, translated by Tony Weir, An Introduction to Comparative Law (third Edition), Clarendon Press, Oxford, (1998), p. 34) VII Preface from the author Company law, including the law on shareholders' derivative action, has experien­ ced significant changes in many countries since I started writing this book. For example, the new German law for stock companies (the UMAG) has come into effect as of November 2005, China has also widely amended its own company law, which came into force as of January 2006, and a new British Companies Bill will also soon come out. These changes actually have made my research far more interesting than I would have expected. Over these past years I have always been asked why I chose to conduct my re­ search in the Netherlands, which does not have the technique of shareholders' derivative action and is not a subject of my research. Yes, it might sound strange. In fact, it was more a matter of coincidence that I came to the Netherlands, a beautiful small country. But it has turned out to be the best choice I could have made. Although there is no derivative action in Dutch company law, there have been arguments both for and against introducing it into the Netherlands. These arguments have inspired the Dutch to study the derivative action from different points of view and to take a more objective attitude towards it. In addition, the Dutch have also been interested in observing law and its application in various countries in addition to their own law. This diversity of viewpoint, together with the language talents of the Dutch, has significantly contributed to my comparative research. Litigation is also a social phenomenon. It is influenced by factors such as legal tradition and culture. These influences would be a topic for a totally different area of research, so I will not, nor am I able to, touch upon them here. Nevertheless, this aspect of comparative research may provide an interesting subject for further study in this field. English law tends to use the term 'company,' while American law 'corporation.' Therefore, 'company' and 'corporation' are used alternately in this book. Xiaoning Li October 2006 Groningen, the Netherlands IX Contents Preface V Preface from the author IX Contents XI Selected abbreviations XXIII CHAPTER 1. INTRODUCTION 1.1 The nature of derivative action 1 1.1.1 The proper plaintiff principle 1 1.1.2 The nature of derivative action 2 1.1.2.1 The derivative action as an exception to the proper plaintiff principle 2 1.1.2.2 The nature of 'derivative' and 'representative' 3 1.2 Justifications for derivative action 4 1.2.1 Derivative action justified by its function 4 1.2.2 Derivative action justified from an economic perspective 4 1.3 Disadvantages of derivative action 5 1.3.1 Risk of unjust interference in corporate management 5 1.3.2 The plaintiff's weak incentive 5 1.3.3 Problems of corporate recovery 7 1.4 The role'of derivative action 7 1.4.1 Corporate governance as a comprehensive system 7 1.4.2 Different approaches towards the role of derivative action 8 1.4.3 Factors affecting the function of derivative action
Load more

Recommended publications
  • WPS 5-2013 the Rule in Foss V Harbottle Is Dead by Kershaw
    The Rule in Foss v Harbottle is Dead; Long Live the Rule in Foss v Harbottle David Kershaw LSE Law, Society and Economy Working Papers 5/2013 London School of Economics and Political Science Law Department This paper can be downloaded without charge from LSE Law, Society and Economy Working Papers at: www.lse.ac.uk/collections/law/wps/wps.htm and the Social Sciences Research Network electronic library at: http://ssrn.com/abstract=2209061. © David Kershaw. Users may download and/or print one copy to facilitate their private study or for non-commercial research. Users may not engage in further distribution of this material or use it for any profit-making activities or any other form of commercial gain. The Rule in Foss v Harbottle is Dead; Long Live the Rule in Foss v Harbottle * David Kershaw Abstract: The proper plaintiff rule reflects the elemental legal principle that only the right-holder is entitled to enforce the right. At common law, as a corollary of this principle, only when the general meeting was incapable of acting in the corporate interest could a derivative action be brought. It followed from this principle that wrongdoer control of the shareholder meeting was a pre-requisite to derivative litigation. The Companies Act 2006 introduced what is considered to be a ‘new’ derivative action mechanism. Although the Act is silent about the wrongdoer control requirement, it is widely understood to have abolished it. Central to this understanding is the view that this is what Parliament intended, as supported by a view of the mischief of the Act and by several ministerial statements.
    [Show full text]
  • WHY IS the RULE in FOSS V HARBOTTLE SUCH an IMPORTANT ONE? Ioanna Mesimeri Advocate 1. Introduction a Company Has a Separate
    WHY IS THE RULE IN FOSS V HARBOTTLE SUCH AN IMPORTANT ONE? Ioanna Mesimeri Advocate 1. Introduction A company has a separate legal personality, distinct and separate from the members who compose it and so it can ‘sue and be sued in its own name’1. Decisions of a company are taken by the shareholders and the board members and represent the majority of the company2. Each company member is contractually bound by the company’s constitution which mandates that every member agrees to be bound by the majority’s decisions3. Courts have long been reluctant to get involved in the company’s internal management4 as long as directors are operating under the provisions of the Articles5. All the above principles coexist in the rule of Foss v Harbottle (1843)6. The principle of separate legal personality, the doctrine of majority rule, the statutory contract and the internal management principle are all translated in the Foss v Harbottle rule, the ‘rule of procedure governing locus standi’7. This rule is the basis of ‘common law jurisprudence regarding who may bring an action on behalf of the company’8 and although its existence dates back beyond 150 years, it still constitutes a significant part of the company law9. The rule is considered prudent as it recognises that it is pointless to bring an action to the courts for an issue that a company can resolve on its own, or a wrongdoing that can be settled within its own internal management10. Without the rule in Foss v Harbottle, there would occur a huge amount of superficial litigation which would threaten the normal performance of a company11.
    [Show full text]
  • Business Law, Fifth Edition
    BUSINESS LAW Fifth Edition This book is supported by a Companion Website, created to keep Business Law up to date and to provide enhanced resources for both students and lecturers. Key features include: ◆ termly updates ◆ links to useful websites ◆ links to ‘ebooks’ for introductory and further reading ◆ ‘ask the author’ – your questions answered www.cavendishpublishing.com/businesslaw BUSINESS LAW Fifth Edition David Kelly, PhD Principal Lecturer in Law Staffordshire University Ann Holmes, M Phil, PGD Dean of the Law School Staffordshire University Ruth Hayward, LLB, LLM Senior Lecturer in Law Staffordshire University Fifth edition first published in Great Britain 2005 by Cavendish Publishing Limited, The Glass House, Wharton Street, London WC1X 9PX, United Kingdom Telephone: + 44 (0)20 7278 8000 Facsimile: + 44 (0)20 7278 8080 Email: [email protected] Website: www.cavendishpublishing.com Published in the United States by Cavendish Publishing c/o International Specialized Book Services, 5804 NE Hassalo Street, Portland, Oregon 97213-3644, USA Published in Australia by Cavendish Publishing (Australia) Pty Ltd 3/303 Barrenjoey Road, Newport, NSW 2106, Australia Email: [email protected] Website: www.cavendishpublishing.com.au © Kelly, D, Holmes, A and Hayward, R 2005 First edition 1995 Second edition 1997 Third edition 2000 Fourth edition 2002 Fifth edition 2005 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, without the prior permission in writing of Cavendish Publishing Limited, or as expressly permitted by law, or under the terms agreed with the appropriate reprographics rights organisation.
    [Show full text]
  • Majority Rule and Minority Protections: Theoretical Frameworks and National Practice in the Shadow of the Eu: the Case of Ireland
    MAJORITY RULE AND MINORITY PROTECTIONS: THEORETICAL FRAMEWORKS AND NATIONAL PRACTICE IN THE SHADOW OF THE EU: THE CASE OF IRELAND DEIRDRE AHERN Associate Professor at Trinity College Dublin Table of Contents I. INTRODUCTION .................................................................................................... 2 II. THE IRISH COMPANY LAW LANDSCAPE ....................................................... 4 1. Sources of law ...................................................................................................... 4 2. Majorities and minorities within corporate decision-making ............................... 5 III. DIRECTORS’ DUTIES ....................................................................................... 7 1. The duty to act in the best interests of the company ............................................ 7 2. The duty to act only for purposes allowed by law ................................................ 8 3. Duties owed by directors to individual shareholders? .......................................... 9 IV. DERIVATIVE ACTIONS BY MINORITY SHAREHOLDERS ....................... 9 1. The company as primary litigator of wrongs........................................................ 9 2. The complex territory of derivative actions ....................................................... 10 3. Derivative actions for fraud on the minority ...................................................... 11 4. Derivative actions based on appeals to fairness and justice ............................... 14 5. Conclusions
    [Show full text]
  • Derivative Claims Under UK Company Law and Some Related Provisions of German Law by Frank Wooldridge and Liam Davies
    22419 Amicus 90 Summer text.qxd:Text 20/9/12 12:39 Page 5 Derivative claims under UK company law and some related provisions of German law by Frank Wooldridge and Liam Davies INTRODUCTORY REMARKS an action” and that the leave of the court should be The bringing of derivative claims by the shareholders of required to continue a derivative action. The Company an English or Welsh company used to be restricted by Law Reform Steering Group made a similar reason of the application of the common law rule in Foss v recommendation regarding a simplified procedure for such Harbottle [1843] 2 Hare 461 (the position was the same in actions. This recommendation was adopted in sections Scotland). According to this rule, which was subject to 260-264 of Part 11 of the Companies Act 2006. This Act exceptions, an individual shareholder could not bring an also provided that such derivative claims could be brought action on the company’s behalf against a director who was in relation to a cause of action vested in the company and in breach of his duties to the company. It was only possible seeking relief on its behalf only with the permission of the to bring such a claim if the wrongdoing was not ratifiable or treated as such. Where an unratifiable wrong could be court. The 2006 Act further provides that derivative claims identified, a derivative action by an individual shareholder may be brought by way of a petition under section 994, might not take place where the majority of the which is concerned with unfairly prejudicial conduct of the shareholders in general meeting decided not to sue the company’s affairs.
    [Show full text]
  • Shareholder Remedies Consultation
    226-425-21 THE LAW COMMISSION SHAREHOLDER REMEDIES CONTENTS Paragraph Page PART 1: OVERVIEW 1 Terms of reference 1.2 1 Scope of the project 1.4 1 Structure of the paper 1.15 6 Scottish Law Commission 1.19 6 Acknowledgments 1.20 7 SECTION A: THE PERSONAL ACTION PART 2: A SHAREHOLDER’S PERSONAL RIGHTS ARISING FROM THE COMPANY’S CONSTITUTION 8 Introduction 2.1 8 The company constitution 2.2 8 The section 14 contract and how it differs from other contracts 2.6 9 Membership rights 2.15 12 Internal irregularities 2.21 14 Transactions outside the company’s powers 2.29 17 Restraining future transactions 2.29 17 Past transactions 2.30 17 Challenging resolutions to amend the articles of association 2.31 17 Identifying enforceable personal rights in the articles 2.39 20 PART 3: OTHER CIRCUMSTANCES IN WHICH A SHAREHOLDER CAN BRING A PERSONAL ACTION 22 Introduction 3.1 22 Statutory rights 3.2 22 Shareholder agreements 3.3 22 Introduction 3.3 22 Advantages 3.4 23 Contents 3.6 23 Disclosure of agreements 3.8 24 Enforceability 3.9 24 Conclusion 3.17 26 SECTION B: THE DERIVATIVE ACTION PART 4: A SHAREHOLDER’S RIGHT TO BRING AN ACTION ON BEHALF OF THE COMPANY 27 Introduction 4.1 27 The majority rule and proper plaintiff principles 4.2 27 Fraud on the minority 4.7 29 Fraud 4.9 30 Wrongdoer control 4.12 31 iii Paragraph Page When fraud and control must be shown 4.17 33 “Independent organ” does not wish the action to proceed 4.18 34 Ultra vires transactions 4.19 35 Is the transaction ultra vires? 4.21 35 No need to show fraud on the minority 4.25 36 “Independent
    [Show full text]
  • Act 2006 and Ghana’S Companies Act 1963 (Act 179), to the Rule in Foss V Harbottle
    Beijing Law Review, 2019, 10, 153-167 http://www.scirp.org/journal/blr ISSN Online: 2159-4635 ISSN Print: 2159-4627 A Comparison of the Statutory Provisions of the United Kingdom (UK) Companies Act 2006 and Ghana’s Companies Act 1963 (Act 179), to the Rule in Foss v Harbottle Alhassan Salifu Bawah Business School, University of Education, Winneba, Ghana How to cite this paper: Bawah, A. S. Abstract (2019). A Comparison of the Statutory Provisions of the United Kingdom (UK) This paper adopts the comparative approach in its bid to compare the excep- Companies Act 2006 and Ghana’s Compa- tions to the rule in Foss v Harbottle1 under the statutory provisions of the UK nies Act 1963 (Act 179), to the Rule in Foss v Companies Act 2006 (CA 2006), and Ghana’s Companies Act 1963 (Act 179). Harbottle. Beijing Law Review, 10, 153-167. https://doi.org/ 10.4236/blr.2019.101009 The rationale is to critically examine the differences and commonalities of the Companies Acts of both the UK and Ghana. The article argues that minority Received: January 7, 2019 shareholders in Ghana are given more protection in terms of the avenues Accepted: March 1, 2019 opened to them to bring actions against the company or the controlling ma- Published: March 4, 2019 jority shareholders as compared to what pertains in the United Kingdom. Copyright © 2019 by author(s) and Scientific Research Publishing Inc. Keywords This work is licensed under the Creative Commons Attribution International Companies Act 2006 and Insolvency Act 1986, Both of the UK, Companies License (CC BY 4.0).
    [Show full text]
  • Shareholder Remedies: Demise of the Derivative Claim?
    Shareholder Remedies: Demise of the Derivative Claim? Julia Tang* Abstract - The new statutory derivative claim in the Companies Act 2006 ("CA 2006") was meant to herald a more modem, flexible and accessible criteria for determining whether a shareholder could pursue an action. It was aimed at tackling the problematic rules which emerged from Foss v Harbottle (1843). This paper examines the two- stage procedure in the CA 2006 Part 11 by focusing on specific elements within it, i.e., primafacie case, ratification etc. The complexities of pursuing a statutory derivative claim will be highlighted by critically discussing how these elements have been interpreted in recent case law such as FranbarHoldings Ltd v Patel (2008) and Stainer v Lee (2010). It will be argued that the uncertainty that presently plagues the two-stage procedure and the interpretation of the elements within it is likely to lead to the demise of the statutory derivative claim in England and Wales for the foreseeable future. A. INTRODUCTION Obscure, complex, rigid, old-fashioned and unwieldy are terms which have all been used to describe the rule in Foss v Harbottle. 1 This prompted the Law Commission of the United Kingdom to recommend 'that there should be a new derivative procedure with more modern, flexible and accessible criteria for determining whether a shareholder can pursue the action.' 2 This paper analyses the new statutory derivative claim in the Companies Act 2006 ("CA 2006") Part 11 by examining the two- stage procedure. Considering the breadth of the two-stage procedure, this paper shall be focusing only on the primafacie case, section 172 (duty to promote the success of the company) within sections 263(2)(a) and 263(3)(b), the applicant's good faith and ratification.
    [Show full text]
  • Macmillan Law Masters Business Law Macmillan Law Masters
    Macmillan Law Masters Business Law Macmillan Law Masters Series Editor Marise Cremona Basic English Law (2nd edn) W. T. Major Business Law (2nd edn) Stephen Judge Company Law (3rd edn) Janet Dine Constitutional and Administrative Law (2nd edn) John Alder Contract Law (3rd edn) Ewan McKendrick Conveyancing (2nd edn) Priscilla Sarton Criminal Law (2nd edn) Marise Cremona Economic and Social Law and Policy of the European Union Jo Shaw Employment Law (2nd edn) Deborah J. Lockton Environmental Law and Ethics John Alder and David Wilkinson Family Law (2nd edn) Kate Standley Intellectual Property Law Tina Hart and Linda Fazzani Land Law (3rd edn) Kate Green Landlord and Tenant Law (3rd edn) Margaret Wilkie and Godfrey Cole Law of the European Union (2nd edn) Jo Shaw Law of Succession Catherine Rendell Law of Trusts Patrick McLoughlin and Catherine Rendell Legal Method (2nd edn) Ian McLeod Legal Theory Ian McLeod Social Security Law Robert East Torts (2nd edn) Alastair Mullis and Ken Oliphant Business Law Second Edition Law Series Editor: Marise Cremona Senior Fellow, Centre for Commercial Law Studies Queen Mary and Westfield College, University of London --MACMILlAN © Stephen Judge 1995, 1999 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1P 9HE. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages.
    [Show full text]
  • BUSINESS LAW Edition Keenan & Riches’
    Ninth Keenan & Riches’ BUSINESS LAW edition Keenan & Riches’ ‘This book is comprehensive in coverage and provides a well rounded introduction to business law. It is clearly written and likely to become a ‘must have’ text for all business LAW BUSINESS law students.’ Indira Carr, Professor of Law at the University of Surrey BUSINESS LAW Business Law, now in its ninth edition, is a manageable, well trusted and reliable text specifi cally designed for non-law students studying Ninth edition law for the fi rst time. Maintaining the direct and accessible approach & Riches’ Keenan which has made this book so popular, Riches and Allen provide user-friendly explanations of the law in a highly practical and Sarah Riches & Vida Allen engaging style immediately equipping you with a good understanding Do you want to give yourself a head of key legal concepts. start come exam time? Visit www.mylawchamber.co.uk/riches to Now thoroughly revised and updated, the new edition includes access answers to the questions in the book to test yourself on topics covered. You’ll key changes to the law on: also fi nd legal updates to help you impress examiners and lecturers with knowledge of • The Consumer Protection from Unfair Trading Regulations 2008 the latest developments. • Companies Act 2006 Worried about getting to grips with cases? • The Employment Equality (Age) Regulations 2006 Amendment Case Navigator offers unique online support Regulations 2008 that helps you improve your case reading and analysis skills in Business Law. Cases contained within this resource are highlighted throughout this book. The LexisNexis element of Case Navigator is only available to those who currently The coverage of tort law has also been expanded and AS subscribe to LexisNexis Butterworths C E restructured in this edition to better match how the topic is covered on online.
    [Show full text]
  • Derivative Claims: Common Law, Statutory and Double In
    DERIVATIVE CLAIMS: COMMON LAW, STATUTORY AND DOUBLE IN HONG KONG AND UK – A COMPARISON Lesley Anderson QC Kings Chambers and Hardwicke 1. The derivative claim is a procedural device designed by the common law to enable justice to be done where the wrongdoer is in control of the entity in which the relevant cause of action is vested. 2. Despite both jurisdictions now having provided for a statutory derivative action – in the UK in section 260 of the Companies Act 2006 (“CA 2006”) and in Hong Kong in sections 731 to 738 Companies Ordinance (“CAP 622”) - it is now recognised in Hong Kong and the UK that the common law is a flexible tool which does not distinguish between so-called “ordinary”, “multiple” or “double” derivative actions. 3. In the words of Briggs J. as he then was, in Universal Project Management Ltd v Fort Gillicker Ltd [2013] Ch 551 at [26]: “the common law procedural device called the derivative action was … clearly sufficiently flexible to accommodate as the legal champion or representative of a company in wrongdoer control a would-be claimant who was either (and usually) a member of that company or (exceptionally) a member of its parent company where that parent company was in the same wrongdoer control. I would not describe that flexibility in terms of separate derivative action, whether headed “ordinary”, “multiple” or “double”. Rather it was a single piece of procedural ingenuity designed to serve the interests of justice in appropriate cases calling for the identification of an exception to the rule in Foss v Harbottle”.
    [Show full text]
  • HHG Capital Corp Form S-1/A Filed 2021-08-23
    SECURITIES AND EXCHANGE COMMISSION FORM S-1/A General form of registration statement for all companies including face-amount certificate companies [amend] Filing Date: 2021-08-23 SEC Accession No. 0001493152-21-020934 (HTML Version on secdatabase.com) FILER HHG Capital Corp Mailing Address Business Address 1 COMMONWEALTH LANE 1 COMMONWEALTH LANE CIK:1822886| IRS No.: 000000000 | State of Incorp.:D8 | Fiscal Year End: 0930 #03-20, SINGAPORE #03-20, SINGAPORE Type: S-1/A | Act: 33 | File No.: 333-252885 | Film No.: 211195754 SINGAPORE U0 149544 SINGAPORE U0 149544 SIC: 6770 Blank checks 65 66591335 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document As filed with the Securities and Exchange Commission on August 23, 2021 Registration No. 333-252885 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1/A (AMENDMENT NO. 4) REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 HHG CAPITAL CORPORATION (Exact name of registrant as specified in its constitutional documents) British Virgin Islands 6770 n/a (State or other jurisdiction of (Primary Standard Industrial (I.R.S. Employer incorporation or organization) Classification Code Number) Identification Number) 1 Commonwealth Lane #03-20, Singapore, 149544 Tel: +65 6659 1335 (Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices) Cogency Global lnc. 122 East 42nd Street, 18th Floor New York, NY 10168 +1 800-221-0102 (Name, address, including zip code, and telephone number, including area code, of agent for service) Copies to: Lawrence Venick Andrew M. Tucker David J.
    [Show full text]