Statutory Derivative Action in Australia and Shareholder Litigation: Is there a Need for Law Reform?

The statutory derivative action is a special type of court action that enables a shareholder to pursue a wrongdoer in the company, for example, by proceeding against a director for breach of directors’ duties. However, it is rarely used due to the difficulty in obtaining permission from the court to commence the action and due to uncertainty in the recovery of legal costs. This thesis advances arguments based on empirical findings, case law analysis and overseas comparisons, and provides suggestions for law reform in order to improve the use of the statutory derivative action as a shareholder remedy.