(Original post by jacketpotato)
Derivative claims and s994 claims are similar. You can get similar remedies. In fact, one of the possible remedies for a s994 claim is a derivative action (this is because the court doesn't want you to have to re-start the litigation process all over again if it turns out you should have started a derivative action instead of a s994 claim).
The difference is that derivative claims are claims by the company
. The shareholder represents the company in the litigation on behalf of all shareholders, and any remedies are awarded to the company
. Section 994 claims are claims by that particular shareholder
and any remedy is awarded to that particular shareholder
. In any given scenario, think about what the claimant is trying to achieve - is the claim about protecting the company as a whole
or is it about protecting that particular shareholder, or class of shareholders.