Detail the conditions that have to be satisfied before an applicant can bring an action successfully under the exception to the rule in Foss v Harbottle.

Detail the conditions that have to be satisfied before an applicant can bring an action successfully under the exception to the rule in Foss v Harbottle
ANSWER
• The conduct complained of most at the lowest involve some fraud.
• The fraudsters or wrong doers must be in control of the company in law or in fact.
• The company must be made one of the dependants in the action.
• The plaintiff shareholder must sue in a representative capacity on behalf of himself and other members, other than the real defendants.
• The right to bring a derivative action is afforded to the individual member as a matter of grace.
• The plaintiff remains dominus litis until judgement and can discontinue or settle the action at his pleasure.