Parry v Bartlett & Anor

Parry v Bartlett & Anor

Permission is granted to continue the derivative claim because there is a strong prima facie case of breach of fiduciary duty by Mr Bartlett, the actions were not ratified, Mr Parry is acting in good faith, and no realistic alternative remedy exists; the case fits both statutory and common law requirements for derivative actions.

Parties
Claimant: Charles Parry; First Defendant: Guy Bartlett; Second Defendant: The Charles Parry Group Limited
Jurisdiction
England and Wales
Judgment Date
29 November 2011
Procedural Posture
Derivative Claim / Application for Permission to Continue Derivative Claim
Outcome
Permission granted to continue derivative claim
Legal Topics
Derivative Actions, Breach of Fiduciary Duty, Ratification, Good Faith, Alternative Remedies
Company Law Derivative Actions Breach of Fiduciary Duty Ratification Good Faith Alternative Remedies

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Parties

Charles Parry

Claimant

Guy Bartlett

First Defendant

The Charles Parry Group Limited

Second Defendant

Procedural Posture

Derivative Claim / Application for Permission to Continue Derivative Claim

Legal Issues

  1. 1 Whether permission should be granted to continue a derivative claim under section 261 of the Companies Act 2006
  2. 2 Whether Mr Bartlett breached fiduciary duty in dissipation of company assets
  3. 3 Whether the actions were ratified or capable of ratification

Ratio Decidendi

Permission is granted to continue the derivative claim because there is a strong prima facie case of breach of fiduciary duty by Mr Bartlett, the actions were not ratified, Mr Parry is acting in good faith, and no realistic alternative remedy exists; the case fits both statutory and common law requirements for derivative actions.

Court Disposition

Permission granted to continue derivative claim

Orders

  • Permission granted to Mr Parry to continue the derivative claim on behalf of CPG under section 261 of the Companies Act 2006