A recent High Court decision1 reconsidered the
circumstances in which a shareholder or director may represent a
company in legal proceedings. The court confirmed that it will
exercise discretion to permit such representation only in
exceptional circumstances, and in exercising such discretion it
will look to establish whether the company has a real or bona fide
case.
Facts
The case related to an application brought by Mr Flynn, the
managing director and principal shareholder in the defendant
company, for an order permitting him to legally represent the
company in the proceedings. The proceedings involved the plaintiff
bank seeking an order for possession and, if necessary, for sale of
certain lands mortgaged to it by the company. When the bank's
proceedings were still pending in the Masters Court, an application
was made ex parte by Flynn to the High Court for an order
permitting him, as a duly authorised agent of the company, to enter
an appearance on behalf of
