ClientEearth v Shell [2023] EWHC 1897 (Ch) is the first attempt to use the statutory shareholder derivative action (Part 11 Chapter 1 of the Companies Act 2006 (CA 2006)) to hold directors liable for breach of directors’ duties for issues related to climate change. A derivative action can be used by shareholders in limited circumstances to bring an action of recourse on behalf of the company. Derivative actions are typically used to protect minority shareholders. Therefore, its use in ClientEarth v Shell is of interest, especially considering the ongoing discussion on the role and purpose of business in society. Although company law has primarily focused on profits, the more modern view is that companies should exist for profit, public interests and societal goals (see British Academy, Reforming Business for the 21st Century: A Framework for the Future of the Corporation) …
Adefolake Adeyeye, The Pursuit of Corporate Accountability: Climate Change Litigation and the Use of Shareholder Derivative Actions, Cambridge Law Journal, volume 83, issue 1, March 2024, pp 30-32. Published online by Cambridge University Press: 3 April 2024.
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