Can shareholders of a corporation sue for losses incurred by the company?
British Columbia, Canada
The following excerpt is from First Majestic Silver Corp. v. Davila, 2013 BCSC 717 (CanLII):
The defendants base their argument on the rule in Foss v. Harbottle, which stands for the proposition that, prima facie, the shareholders of a corporation cannot sue for a wrong done to the company; rather, only the company may sue for the loss. The principle itself is non-controversial. The question is whether it applies in the circumstances of this case.
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