Can a shareholder sue for diminution of share value when the shareholder has her own cause of action?
Newfoundland and Labrador, Canada
The following excerpt is from Walsh v. TRA Company Limited, 2022 NLSC 6 (CanLII):
The court concluded (at para. 68): “Accordingly, the rule in Foss v. Harbottle does not preclude a claim for diminution of share value when the shareholder has her own cause of action because of a wrong done to her, and the corporation, which suffered a loss but not because of a legal wrong done to it, has no cause of action.”
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