Reflective loss is a concept used in UK company law for losses of individual shareholders that are inseparable from general losses of the company. 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 she has suffered a loss in her personal capacity for a personal right.

Legal development

• Prudential Assurance v Newman Industries Ltd [1982] Ch 204
• Johnson v Gore Wood & Co [2002] 2 AC 1
• Giles v Rhind [2002] EWCA Civ 1428
• Gardner v Parker [2004] 2 BCLC 554