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A filter, not a formality: BVI derivative action leave after Dekel Derivative action or unfair prejudice? The leave requirement under section 184C of the BCA A realistic prospect of success Practical lessons Comment
A BVI derivative action lets a minority shareholder sue on behalf of the company when those in control will not, but leave is far from automatic. The Court of Appeal's recent decision in Dekel v Clerkenwell Lifestyle Ltd is a timely reminder of how high the bar is. It also provides a good opportunity to recap how the derivative route differs from the more familiar unfair prejudice claim.
Minority shareholders who are unhappy with how a BVI company is run usually have two main statutory options under the BVI Business Companies Act, Revised Edition 2020 (BCA). An unfair prejudice claim…
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