QUESTION
Can minority shareholders who filed a complaint on behalf of a corporation against the majority shareholder substitute in place of the corporation?
Asked on Jul 18th, 2012 on Business Litigation - California
More details to this question:
Or do they have to re-file as a derivative action? I am looking for Cases that show minorities have no authority to substitute in after filing a meritless complaint against the majority shareholder on behalf of the corporation. They are trying to do so to keep an unjust preliminary injunction in place that takes away the rights of the majority shareholder and corporation. Any help would be amazing and may help save a family business!
1 ANSWER
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The answer is "it depends," and a great deal may depend on the whim of the individual judge to whom the matter is assigned. Generally speaking, leave to amend is frequently granted, and apparently in this case there is no question of the futility of demand. Your attorney can properly assist you in this matter. This is not the kind of issue that lends itself to pro se drafting.
Answered on Jul 19th, 2012 at 1:56 AM