Chwilio Deddfwriaeth

Political Parties, Elections and Referendums Act 2000

New Section 347J : Costs of shareholder action

279.Section 347J provides that the authorised group of members of a company are not to be entitled as of right to have the cost of the shareholder action met from the funds of the company except as provided in the section. Under subsection (2), they have the right to apply to the court for an indemnity out of the company’s assets in respect of costs incurred or to be incurred in a shareholder action. The court has full discretion to grant such an indemnity on such terms as it thinks fit. Under subsection (4), if the company is awarded costs or they are agreed to be paid to the company and no subsection (2) order has been made, the costs are paid to the group. Subsection (5) provides, in the same circumstances but where costs go the other way, for them to be paid by the group.

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