Legal & Regulatory News

ClientEarth applies for an oral hearing after a refusal on paper of its High Court derivative claim against Shell plc and their directors' approach to climate risk and the energy transition

On 12 May 2023, the High Court refused CE's application for permission on the papers presented on the basis that CE had failed to establish the prima facie case required to warrant the grant of permission under section 261(1) of the CA 2006 for it to continue a derivative claim against Shell's directors.

On 19 May 2023 in the case of ClientEarth v Shell Plc and others [2023] EWHC 1137 (Ch), ClientEarth (CE) applied to the High Court of Justice in London (the High Court) for an oral hearing of its application for permission to continue its derivative claim against Shell plc (Shell) and its directors for alleged breaches of their duties under section 172 and 174 (to promote the success of the company and to exercise reasonable care, skill, and diligence respectively) of the Companies Act 2006 (CA 2006) in connection with the company's climate change risk management strategy.

Subsequently, the judge granted an oral hearing regarding the case but ClientEarth failed to evidence a prima facie case and the claim was not granted.

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