2.7.1 Who can sue?

Directors only have duties to the company. The company can sue the directors in a derivative suit, but only if shareholders are successful in getting permission from the court for the company to do this. A derivative suit is one where the shareholder sues on behalf of the company. This is a special possibility under UK and US law to overcome the problem that shareholders cannot sue directors directly.1 This is described in more detail in 2.7.3.

Other lawsuits against directors are described hereunder as well. Lawsuits brought by shareholders directly in 2.7.5, by the liquidator in 2.7.7, by regulators in 2.7.8. Other measures are described in 2.7.9.