CORPORATIONS ACT 2001 - SECT 237 Applying for and granting leave
CORPORATIONS ACT 2001 - SECT 237
Applying for and granting leave(1) A person referred to in paragraph 236(1)(a) may apply to the Court for leave to bring, or to intervene in, proceedings. (2) The Court must grant the application if it is satisfied that:
- (a)
- it is probable that the company will not itself bring the proceedings, or properly take responsibility for them, or for the steps in them; and
- (b)
- the applicant is acting in good faith; and
- (c)
- it is in the best interests of the company that the applicant be granted leave; and
- (d)
- if the applicant is applying for leave to bring proceedingsthere is a serious question to be tried; and
- (e)
- either:
(3) A rebuttable presumption that granting leave is not in the best interests of the company arises if it is established that:
- (a)
- the proceedings are:
- (b)
- the company has decided:
- (i)
- not to bring the proceedings; or
- (ii)
- not to defend the proceedings; or
- (iii)
- to discontinue, settle or compromise the proceedings; and
- (i)
- acted in good faith for a proper purpose; and
- (ii)
- did not have a material personal interest in the decision; and
- (iii)
- informed themselves about the subject matter of the decision to the extent they reasonably believed to be appropriate; and
- (iv)
- rationally believed that the decision was in the best interests of the company.
(4) For the purposes of subsection (3):
- (i)
- the company is a public company and the person is not a related party of the company; or
- (ii)
- the company is not a public company and the person would not be a related party of the company if the company were a public company; and
- Note: Related party is defined in section 228.