BRITISH VIRGIN ISLANDS
HIGH COURT (COMMERCIAL DIVISION)
SECTION 184 OF THE BVI BUSINESS COMPANIES ACT (THE “ACT”) – DERIVATIVE ACTION – DOUBLE DERIVATIVE – COURT’S POWER
This Case concerned the right of a member of a holding company to bring derivative proceedings in respect of rights vested in its subsidiaries. The Applicant, Microsoft Corporation (“Microsoft”), applied for leave under Section 184C of the Act to commence proceedings against a number of defendants in the Court of Chancery in the State of Delaware in the name and on behalf of a BVI incorporated company, Vadem Limited (“Vadem BVI”) (in respect of which it is a member). Counsel on behalf of Microsoft contended that there was nothing in Section 184C of the Act, which excluded the ability of a member of a holding company to bring proceedings in respect of causes of action vested in a subsidiary.