BCL § 626(c): Demand Futility
- Jan 24 2022
By: Jeffrey M. Haber Derivative actions are often brought by shareholders of a corporation (or limited liability company) to vindicate the entity’s rights.1 Although shareholders are given the right to …
Category: Demand Futility
Court Dismisses Shareholder Derivative Action Because Plaintiffs Failed To Allege Demand Futility Under Delaware Law
- Apr 22 2020
It is well settled, and understood, that “the business and affairs of every corporation are managed by a board of directors.” Stone ex. re. AmSouth Bancorp. v. Ritter, 911 A2d …
Failure to Plead Demand Futility Results in Dismissal of a Shareholder Derivative Action Against the Officers and Directors of GE
- Jul 22 2019
Derivative actions are brought by current shareholders of a company to redress the harm (monetary or equitable) incurred by the company as the result of officer/director self-dealing, breaches of fiduciary …
Failure To Plead Demand Futility Warrants Dismissal Of Derivative Complaint
- May 23 2018
This Blog has previously examined the different aspects of a shareholder’s derivative action, such as the standing requirements and the distinction between direct and derivative claims. (Here, here and here.) …
