Cooperative Credit Associations Act
Marginal note:Derivative action
318. (1) Subject to subsection (2), a complainant or the Superintendent may apply to a court for leave to bring an action under this Act in the name and on behalf of an association or any of its subsidiaries, or to intervene in an action under this Act to which the association or a subsidiary of the association is a party, for the purpose of prosecuting, defending or discontinuing the action on behalf of the association or the subsidiary.
Marginal note:Conditions precedent
(2) No action may be brought and no intervention in an action may be made under subsection (1) by a complainant unless the court is satisfied that
(a) the complainant has given reasonable notice to the directors of the association or the subsidiary of the complainant’s intention to apply to the court under that subsection if the directors of the association or its subsidiary do not bring, diligently prosecute or defend, or discontinue the action;
(b) the complainant is acting in good faith; and
(c) it appears to be in the interests of the association or the subsidiary that the action be brought, prosecuted, defended or discontinued.
Marginal note:Notice to Superintendent
(3) A complainant under subsection (1) shall give the Superintendent notice of the application and the Superintendent may appear and be heard in person or by counsel at the hearing of the application.
- Date modified: