Shareholder Demands and the Delaware Derivative Action

Abstract:     
Among the most "interesting and ingenious" corporate "accountability mechanisms" is the shareholder derivative action. An aggrieved investor may demand the independent directors of a corporate issuer to litigate on behalf of the corporation, for harm(s) allegedly committed upon the corporation. This chapter explores who is eligible to sue derivatively and identifies some of the basic requirements to initiate derivative litigation.

Number of Pages in PDF File: 3

Keywords: shareholders, derivative action, delaware law, section 220, corporate law, chancery court, shreholder litigation, board of directors, business judgment, futility

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