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The Limits of Derivative Actions: The Application of Limitation Periods to Derivative Actions

March 2012

The application of limitation periods to derivative actions causes a practical problem given its two-stage process. While derivative action cases have failed to consider this point, a review of the Canadian jurisprudence in other actions suggests the filing of the leave application, the first of the two-stage process, is sufficient to bring the derivative action within the limitation period. For instance, the Alberta Court of Queen's Bench in Sharma provides support for the argument that an application for leave is sufficient to "seek a remedial order" as it starts a chain of events leading to a judgment. Published in Alberta Law Review, Volume 49, No. 3 (March 2012).

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