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Companies and Allied Matters Act 2020 · Part B · Chapter 13

Section 347 Powers of the court to make orders in derivative actions under section 346

(1)
In connection with an action brought or intervened under section 346 of this Act, the Court may, at any time, make any such order or orders as it deems fit.
(2)
The Court may make an order—
(a)
authorising the applicant or any other person to control the conduct of the action ;
(b)
giving directions for the conduct of the action ;
(c)
directing that any amount adjudged payable by a defendant in the action is paid, in whole or in part, directly to former and present security holders of the company instead of to the company ; and
(d)
requiring the company to pay reasonable legal fees incurred by the applicant in connection with the proceedings.
Cite as: Companies and Allied Matters Act 2020, section 347

What this section means

From the guide: Minority shareholders under CAMA 2020: derivative actions and unfair prejudice

  • The court can control how the action runs, order that damages be paid directly to current and former security holders instead of the company, and order the company to pay the applicant’s reasonable legal fees (section 347).

Read the whole subject

Source: Companies and Allied Matters Act 2020 (Act No. 3 of 2020), Official Gazette No. 124, Lagos, 10 August 2020. General information, not legal advice.