New Zealand law explained for everyone
If you’re a shareholder or director and you start a legal case or join one that’s already happening, you need to get permission from the court first. This is called “leave of the court”. You can find more information about this in section 165.
Once you’ve started or joined the case, you can’t just decide to stop it, make a deal, or settle it on your own. You have to ask the court for approval first. This rule is there to make sure that everything is fair and proper.
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Next up: 169: Personal actions by shareholders against directors
or “Shareholders can sue directors for not fulfilling their duties”No proceedings brought by a shareholder or a director or in which a shareholder or a director intervenes, as the case may be, with leave of the court under section 165, may be settled or compromised or discontinued without the approval of the court.