ABSTRACT
There are three main mechanisms available to a company to take legal action against a director or a former director of a company for breach of duty. First, the board of directors may decide to commence proceedings. Second, if the liquidator or administrator following the commencement of a formal insolvency procedure, such as liquidation or administration, decides to commence proceedings. Third, where a derivative claim or action is brought by one or more members to enforce a right vested not in himself, but the company. Part 11 of the CA 2006 is, therefore, concerned with the third aspect of legal action.
