8 Sept 2008
WADDINGTON LTD v. CHAN CHUN HOO THOMAS AND OTHERS
- Citation
- WADDINGTON LTD v. CHAN CHUN HOO THOMAS AND OTHERS
- Court
- Court of Final Appeal
- Case number
- FACV15/2007
The Court held unanimously that multiple derivative actions are maintainable at common law in Hong Kong where the corporate control situation justifies allowing a shareholder of a parent to sue on behalf of a subsidiary; the common law requires a prima facie case threshold for derivative actions (Prudential test) though the statutory s168BC adopts a lower 'serious question to be tried' threshold; however the reflective loss principle bars Playmates (and thus its shareholder) from recovering losses that are merely reflective of losses suffered by its sub-subsidiaries, so the action may proceed…