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KembaraXtra – Legal Terms – Power to Sue
The power to sue is the legal authority to commence court proceedings.
In company law, the company itself is usually the proper claimant where wrongs are done to it.
The company’s constitution determines which body may exercise this authority.
Under model articles, the board of directors generally controls decisions about litigation.
Shareholders may sometimes intervene through resolutions or residual powers where directors cannot properly act.
The power to sue is the legal authority to commence court proceedings.
In company law, the company itself is usually the proper claimant where wrongs are done to it.
The company’s constitution determines which body may exercise this authority.
Under model articles, the board of directors generally controls decisions about litigation.
Shareholders may sometimes intervene through resolutions or residual powers where directors cannot properly act.
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