kaal:claim:3017612-017

To escape the procedural hurdles of derivative litigation and recover directly, a shareholder must persuade the court that those abusing control of the corporation harmed the shareholder directly rather than the entity.

Source quote, verbatim

To avoid some of the procedural hurdles of derivative litigation and enable direct recovery, shareholders must convince the court that individuals abusing control of the corporation were directly harming the shareholders.

From

Wulf A. Kaal, Shareholder Agreements - National Report of the United States of America (2017), III.1 Shareholders' Agreements on Shareholder Rights, p. 9
https://ssrn.com/abstract=3017612 · source PDF

Cite as

Wulf A. Kaal, Shareholder Agreements - National Report of the United States of America (2017). SSRN: https://ssrn.com/abstract=3017612

Holds when

direct as opposed to derivative suits
Delaware courts ask who suffered the harm and who would receive the recovery

Classification

conditionsupport: evidencedcorporate-governance

Verify

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Attestation record: colloquium/attestations/8c97eff601c9ab2d...json
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