42.—(1) The Regulator may bring civil proceedings in the name and on behalf of a community interest company.
(2) Before instituting proceedings under this Article the Regulator must give written notice to the company stating—
(a)the cause of action,
(b)the remedy sought, and
(c)a summary of the facts on which the proceedings are to be based.
(3) Any director of the company may apply to the court for an order—
(a)that proposed proceedings are not to be instituted under this Article, or
(b)that proceedings instituted under this Article are to be discontinued.
(4) On an application under paragraph (3) the court may make such order as it thinks fit.
(5) In particular the court may (as an alternative to ordering that proposed proceedings are not to be instituted under this Article or that proceedings instituted under this Article are to be discontinued) order—
(a)that the proposed proceedings may be instituted under this Article, or the proceedings instituted under this Article may be continued, on such terms and conditions as the court thinks fit,
(b)that any proceedings instituted by the company are to be discontinued, or
(c)that any proceedings instituted by the company may be continued on such terms and conditions as the court thinks fit.
(6) The Regulator must indemnify the company against any costs incurred by it in connection with proceedings brought under this Article.
(7) Any costs—
(a)awarded to the company in connection with proceedings brought under this Article, or
(b)incurred by the company in connection with the proceedings and which it is agreed should be paid by a defendant,
are to be paid to the Regulator.