The Court of Appeal have today handed down judgment in McGaughey v Universities Superannuation Scheme Ltd  EWCA Civ 873. In this case, 2 members of the USS applied for permission to continue derivative proceedings on the company's behalf against its present and former directors for breach of directors’ duties. The Court of Appeal upheld the first instance judge’s rejection of the application. In a very firm judgment, Asplin LJ (with whom the other members of the court agreed) held that the claim did not satisfy the essential element of any derivative action, as it was not brought for the benefit of the company. She also held that the claimants had failed to establish a prima facie case that the company was entitled to the relief claimed, taking account of the totality of the evidence.
Pensions Barrister will be publishing a casenote on the decision shortly. To read the judgment, click below.