Foss v. Harbottle, rule in

Foss v. Harbottle, rule in

the rule of law that the proper plaintiff in an action in respect of a wrong done to a company is the company itself rather than individual shareholders; as such, no individual can bring an action where the alleged wrong is a transaction that may be ratified and as such made binding on the company by its members.

Collins Dictionary of Law © W.J. Stewart, 2006