Reflective loss
The rule against recovery of reflective loss states that there should be no double recovery, so a shareholder can only bring a derivative action for losses of the company, and may not allege suffering a loss in a personal capacity for a personal right.[1] Where a company suffers loss caused by a breach of duty owed to it, only the company may sue in respect of that loss.— Lord Bingham of Cornhill, Johnson v Gore Wood & Co [2002] 2 AC 1 at 19.Reflective loss extends beyond the diminution of the value of the shares; it extends to the loss of dividends (specifically mentioned in Prudential Assurance v Newman Industries Ltd) and all other payments which the shareholder might have obtained from the company if it had not been deprived of its funds.In Sevilleja v Marex Financial Ltd [2020] UKSC 31 the Supreme Court of the United Kingdom restricted (but declined to abolish) the doctrine, but disapproved many of the statements made previously in Johnson v Gore Wood & Co, describing Lord Millet's speech in particular as a "wrong turn".This article relating to law in the United Kingdom, or its constituent jurisdictions, is a stub.