What is the test for a plaintiff to claim damages from a third party under the Corporations Act?

British Columbia, Canada


The following excerpt is from Robak Industries Ltd. et al. v. Gardner et al., 2006 BCSC 1538 (CanLII):

The key to the application of the rule in Foss v. Harbottle is that the gravamen of the cause of action alleged must arise as a result of wrongs done to the company, whether contractual or tortious, intentional or inadvertent. If the damage that flows is a direct result of the wrongs done to the company, then those damages can only be claimed by the company.

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