An application made or an action brought or intervened in under section 6 shall not be stayed or dismissed by reason only that it is shown that an alleged breach of a right or a duty owed to the company has been or may be approved by the shareholders of such company, but evidence of approval by the shareholders may be taken into account by the Court in making an order under section 347.
Companies and Allied Matters Act 2020 · Part B · Chapter 13
Section 348 Evidence of shareholders’ approval not decisive
Cite as: Companies and Allied Matters Act 2020, section 348
What this section means
From the guide: Minority shareholders under CAMA 2020: derivative actions and unfair prejudice
- Shareholder approval of the alleged breach does not stop or defeat the action, though the court can take it into account (section 348).
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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.