Is there a personal right of action for a shareholder who has been defamed by a third party?
British Columbia, Canada
The following excerpt is from A. & S. Lui Holdings Inc. et al. v. Slay et al., 2017 BCPC 416 (CanLII):
Satanove J. went on to note that, if there is a relationship between the shareholder and the wrongdoer which is independent of the relationship that the shareholder derives through his interest in the company, then a personal right of action accrues which is not caught by the rule in Foss v. Harbottle. However, a shareholder in such a case must not only show that there is an independent relationship or duty between the shareholder and the wrongdoer, but also that the plaintiff shareholder has suffered a loss, separate from that of the company, that is closely linked to the personal wrong done to the plaintiff shareholder. In other words, the plaintiff shareholder must establish there is both an independent relationship and an independent loss before recovery will be allowed.
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