Existing Law Scotland Chapter 1: Derivative Claims in England and Wales Or Northern Ireland Section 262: Application for permission to continue claim as a derivative claim
496.This section addresses the possibility that, where a company has brought a claim and the cause of action on which the claim is based could be pursued by a member as a derivative action:
	the manner in which the company commenced or continued the claim may amount to an abuse of process (e.g. the company brought the claim with a view to preventing a member bringing a derivative claim);
	the company may fail to prosecute the claim diligently; and
	it may be appropriate for a member to continue the claim as a derivative claim;
497.The section provides that, in these circumstances, a member may apply to the court to continue the claim as a derivative action.