s 262 Application for permission to continue claim as a derivative claim
(1) This section applies where— (a) a company has brought a claim, and (b) the cause of action on which the claim is based could be pursued as a derivative claim under this Chapter. (2) A member of the company may apply to the court for permission (in Northern Ireland, leave) to continue the claim as a derivative claim on the ground that— (a) the manner in which the company commenced or continued the claim amounts to an abuse of the process of the court, (b) the company has failed to prosecute the claim diligently, and (c) it is appropriate for the member to continue the claim as a derivative claim. (3) If it appears to the court that the application and the evidence filed by the applicant in support of it do not disclose a prima facie case for giving permission (or leave), the court— (a) must dismiss the application, and (b) may make any consequential order it considers appropriate. (4) If the application is not dismissed under subsection (3), the court— (a) may give directions as to the evidence to be provided by the company, and (b) may adjourn the proceedings to enable the evidence to be obtained. (5) On hearing the application, the court may— (a) give permission (or leave) to continue the claim as a derivative claim on such terms as it thinks fit, (b) refuse permission (or leave) and dismiss the application, or (c) adjourn the proceedings on the application and give such directions as it thinks fit.