12 Jul 2013
CHEN v HE [2013] NZHC 2033
- Citation
- [2013] NZHC 2033
- Court
- High Court
Leave to bring the derivative action under s165 is declined because a prudent business person would not commence the proposed litigation: the alleged conduct by the director is unlikely to amount to a breach of fiduciary duty given the absence of unique or confidential information, the company is no longer trading and liquidation is the more appropriate mechanism to determine and pursue the company's claims, and the prospects and funding do not justify the derivative proceedings.