Document Type
Article
Publication Date
Fall 1983
ISSN
0091-4029
Publisher
Hofstra University School of Law
Language
en-US
Abstract
This article examines the demand shareholders must make on a corporation's board of directors prior to bringing a derivative suit. ... Presented with the question of whether the court would give effect to a decision of a committee of disinterested directors to terminate a shareholder derivative suit alleging directors' breach of fiduciary duties, the court ruled that even if the special committee was truly disinterested and independent, "[t]he Court should determine, applying its own independent business judgment, whether the [corporation's] motion [to dismiss the derivative action] should be granted." ... A derivative suit is one of the means for conducting a thorough investigation of corporate management. ... THE DEMAND REQUIREMENT AND SECTION 36 OF THE INVESTMENT COMPANY ACT ... The majority's statement implies that, consistent with federal policies, a court may terminate a derivative suit based on the ICA if this standard is not met
Recommended Citation
Tamar Frankel & Wayne M. Barsky,
The Power Struggle Between Shareholders and Directors: The Demand Requirement in Derivative Suits
,
in
12
Hofstra Law Review
39
(1983).
Available at:
https://scholarship.law.bu.edu/faculty_scholarship/3006
