Representative action, Business Law and Ethics

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Representative action:

Where individual shareholders have suffered personal loss in addition to the injury to the company one shareholder may bring a representative action on behalf of himself and all the other shareholders who have suffered similar injury.  If the action is successful the plaintiff will obtain a declaration that the improper conduct has been proved.  Each injured party may then claim damages without further need to prove improper conduct.

 An example is Hogg v Cramphorn (1966)


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