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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 8341
Experience:  English solicitor with over 12 years experience
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I want to know about should the "no reflective loss rule" be

Customer Question

Hi, I want to know about should the "no reflective loss rule" be restrictive or more flexible?
JA: Where is this? It matters because laws vary by location.
Customer: It is regarding the UK law
JA: What steps have been taken so far?
Customer: I have read many articles but I could fing a proper way to critically analyze it
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: No that's it.
Submitted: 16 days ago.
Category: Law
Customer: replied 16 days ago.
Sir can you please explain me regarding my question scene I'm having an assignment but I'm stuck in this part of critically analyzing about what I asked.
Customer: replied 16 days ago.
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Customer: replied 16 days ago.
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Expert:  UKSolicitorJA replied 16 days ago.

Hello,

I am a solicitor.

In my opinion, the "No Reflective Loss" rule should be more restrictive as companies are separate legal entitles from shareholders and shareholders should not be able to claim for loss of their shareholding in the case of loss to the company. There is a good article on this rule here: https://www.nortonrosefulbright.com/en-hk/knowledge/publications/0688bcea/shareholder-claims-and-the-no-reflective-loss-rule

May I help further?

Customer: replied 16 days ago.
Sir, what if the no reflective loss rule become more flexible towards shareholders
Expert:  UKSolicitorJA replied 16 days ago.

Shareholders would then have the double advantage of being shielded from claims against the company (corporate veil) and being able to make claims for loss to their shareholdings in the event of loss to the company (which defeats the purpose of corporate veils).

Customer: replied 16 days ago.
Sir, can you tell about it through message please!
Customer: replied 16 days ago.
I know it's difficult to discuss this matter through messages but sir I'm not able to switch to live phone calls sir.
Expert:  UKSolicitorJA replied 16 days ago.

We do not need to have a call. Do you have another question?

Customer: replied 16 days ago.
No sir, thank you so much for your valuable time sir
Expert:  UKSolicitorJA replied 16 days ago.

You are welcome.

All the best