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Franbar Holdings Ltd v Patel [2008] EWHC 1534 (Ch)

By Oxbridge Law TeamUpdated 04/01/2024 07:12

Judgement for the case Franbar Holdings Ltd v Patel

Table Of Contents

  • Relevant test under s. 263(3)(b) is that of a hypothetical director.

    • i.e. if such a person would not attach very much importance to pursuing claim, no leave granted.

  • Factors which hypothetical director would take into account include:

    1. Likelihood of claim being successful

      • i.e. if breaches of duty not obvious, would not bring claim

    2. Ability of company to recover any damages awarded

    3. Costs of proceedings

    4. Damage to company’s reputation

  • Fact that Claimant had alternative claim for unfair prejudice considered important to exercise of discretion under s.263(3)

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Company law Notes
805 total pages
1068 purchased

Company law notes fully updated for recent exams in the UK. These notes...