November 15, 2006

Werner Kranenburg writes to say:

An update to your Sept. 19 post ("UK plans to liberalize scope for derivative suits"):

The Companies Act 2006 (formerly the Company Law Reform Bill) received royal assent last week.

For debates on the Bill in the House of Commons, including on derivative claims and derivative proceedings, see this link.

For comments from law firms, especially whereas derivative claims are concerned, see
- Norton Rose (the most comprehensive one of these three)
- Freshfields (PDF)
- Ashurst (Word document)

I’d argue it won’t, as reported, but the proof of the pudding is in the eating whether or not the Act will lead to increased litigation or not indeed.