In brief: Consultation on shareholder remedies

The Law Commission has published a consultation paper on shareholder remedies. The paper makes provisional proposals for changes in the law and procedure. The commission recommends that the circumstances in which a shareholder can sue on behalf of a company be set out in rules of court; that a new more streamlined statutory remedy be created to deal with the most common allegations of unfairly prejudicial conduct; and that changes are made in the management of disputes which go to court so as to reduce the length and cost of proceedings. Responses to the paper should be submitted by 22 January 1997.