Universal Project Management Services Ltd v Fort Gilkicker Ltd [2013] BCC 365

Court: High Court, Chancery Division

Facts: A shareholder in a parent company sought to bring a derivative claim against a subsidiary company, aiming to address alleged wrongs at the subsidiary level.

Issue: Does the concept of double or multiple derivative actions exist under common law, and does it continue to be applicable after the Companies Act 2006?

Held: Permission was granted for the claim to proceed. The court confirmed that the Companies Act 2006 did not abolish the common law procedural device of multiple derivative actions.

Key Judicial Statement: Briggs J noted that the 2006 Act’s reforms did not eliminate the common law concept of multiple derivative actions, which was simply a procedural tool adapted to various scenarios.

💡LevelUpLaw: Multiple derivative actions, while not included in the statutory derivative action framework of the Companies Act 2006, are still recognized under common law for shareholders seeking to address wrongs in subsidiary companies.