Derivative Actions and the Requirement That Demand Be Made

Derivative Actions and the Requirement That Demand Be Made

A central requirement of bringing a derivative action is that the complaining member or shareholder have made a demand upon those in control of the business entity to investigate and take remedial action with respect to the complained of actions. I recently reviewed a decision from the Federal District Court here in Kentucky in which it was determined that the plaintiffs had satisfied that requirement. That posting is titled Federal District Court Addressed Derivative Actions, Allows Case to Proceed; HERE IS A LINK to that posting.

In a recent posting in his blog New York Business Divorce, Peter Mahler has reviewed a number of recent decisions touching upon the same topic. That posting is titled The Demanding Demand Requirement in Shareholder Derivative Actions; HERE IS A LINK to that posting.