The indemnity cost order in a derivative action

Reflects on the use of indemnity costs orders in derivative actions. Reviews key features of such actions by minority shareholders, case law on the development of derivative actions, such as the Court of Appeal decision in Wallersteiner v Moir (No.2), the main equitable and procedural requirements and the approach adopted by other common law jurisdictions. Evaluates controversial issues surrounding their application, including whether an indemnity order should be granted in respect of a petition under the Companies Act 1985 s.459 when combined with a derivative action, and the position where a company is faced with insolvency. Considers how the practical obstacles to making such orders in derivative actions might be overcome.