Wishart v Castlecroft Securities Ltd & Ors [2010] ScotCS CSIH_2 (25 November 2009)

Wishart v Castlecroft Securities Ltd & Ors [2010] ScotCS CSIH_2 (25 November 2009)

A member who is granted leave to bring derivative proceedings is ordinarily entitled to be indemnified by the company for expenses incurred in relation to the application for leave, as the proceedings are brought on behalf of the company and the principle of indemnification applies to both the application and the proceedings themselves.

Citation
[2010] ScotCS CSIH_2
Parties
Petitioner: Alexander Marshall Wishart; Respondent: Castlecroft Securities Ltd
Jurisdiction
Scotland
Judgment Date
25 November 2009
Procedural Posture
Petition / Post Judgment Application for Expenses
Outcome
application granted
Legal Topics
Derivative Proceedings, Costs and Expenses, Indemnification of Shareholders
Company Law Civil Procedure Derivative Proceedings Costs and Expenses Indemnification of Shareholders

Case Brief

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Parties

Alexander Marshall Wishart

Petitioner

Castlecroft Securities Ltd

Respondent

Procedural Posture

Petition / Post Judgment Application for Expenses

Legal Issues

  1. 1 Whether the petitioner is entitled to be indemnified by the company for expenses incurred in the application for leave to bring derivative proceedings.

Ratio Decidendi

A member who is granted leave to bring derivative proceedings is ordinarily entitled to be indemnified by the company for expenses incurred in relation to the application for leave, as the proceedings are brought on behalf of the company and the principle of indemnification applies to both the application and the proceedings themselves.

Court Disposition

application granted

Orders

  • The company is found liable to the petitioner in the expenses of process to date, on an agent and client, client paying, basis.