In Sevilleja v Marex Financial Ltd the Supreme Court considered the ambit of the prohibition on a shareholder recovering losses from third parties for the reduction in the value of their shares or loss of dividend income arising from a wrong suffered by the company. This prohibition on ‘reflective loss’ had been growing in scope in recent years, leading to a lack of clarity as to whether it is taxonomically situated in company law or in private law. The majority in this case situated the prohibition firmly within company law. This note argues that the majority judgment did not go far enough and explores the impact of this case on company law more broadly.
Jonathan Hardman, Sevilleja v Marex Financial Ltd: Reflective Loss and the Autonomy of Company Law, Modern Law Review, https://doi.org/10.1111/1468-2230.12663. First published: 6 July 2021.