"Corporations Act 2001 s 237 leave test for derivative action"
Corporations Act 2001 (Cth) s 237 requires the Court to grant leave for a statutory derivative action only if criteria including company inaction, applicant good faith, company best interests, serious question, and notice are satisfied.
This is a human-established fact, not a universal axiom. It is true within CTH as enacted by Federal Register of Legislation.
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Answer
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Corporations Act 2001 (Cth) s 237 sets the leave test for statutory derivative proceedings under s 236. The Court must grant leave if satisfied that it is probable the company will not itself bring, prosecute, defend or discontinue the proceedings; the applicant is acting in good faith; granting leave is in the best interests of the company; there is a serious question to be tried if the application is to bring or intervene in proceedings; and the required notice has been given or dispensing with notice is appropriate. Official source checked: Federal Register of Legislation, Corporations Act 2001 current text, s 237. Dogfood note: Source search for s 237 did not surface a native Corporations Act s 237 row; a stale/unrelated CCA row could outrank relevant Corporations topics.
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