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Journal article

Climate change on the board: navigating directors’ duties

Abstract:
A noteworthy trend within the surge in corporate climate litigation is the increasing focus on personal responsibility of corporate directors. In 2023, ClientEarth commenced a derivative claim against Shell and its directors in the English courts, arguing that those directors were in breach of their directors' duties under the Companies Act 2006. This article analyses the claimant's arguments, examines the basis upon which the court dismissed the claim and identifies the procedural challenges that are likely to be faced by future claimants in commencing similar claims. In light of the rising trend in shareholder activism, coupled with the ever-increasing regulatory requirements to strengthen corporate human rights and environmental performance, the article anticipates further attempts to bring derivative claims against directors for failing to take action to address climate change risks. It provides suggestions for the sorts of arguments that may have greater prospects of succeeding before the English courts.
Publication status:
Published
Peer review status:
Peer reviewed

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Files:
Publisher copy:
10.1080/14735970.2024.2414466

Authors


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Institution:
University of Oxford
Division:
SSD
Department:
Law
Role:
Author
ORCID:
0000-0002-9136-9449


More from this funder
Funder identifier:
https://ror.org/012mzw131
Grant:
ECF-2021-132


Publisher:
Taylor & Francis
Journal:
Journal of Corporate Law Studies More from this journal
Volume:
24
Issue:
2
Pages:
479-514
Publication date:
2024-10-29
Acceptance date:
2024-10-06
DOI:
EISSN:
1757-8426
ISSN:
1473-5970


Language:
English
Keywords:
Pubs id:
2053183
Local pid:
pubs:2053183
Deposit date:
2024-10-30

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