Rule 23.1 Requirements Are Satisfied By Business Relationships
Posted In Derivative Claims, DirectorsAIG Retirement Services, Inc. v. Barbizet, C.A. No. 974-N, 2006 WL 1980337 (Del. Ch. July 11, 2006). Business relationships between directors may sometimes make them unqualified to pass upon demands their company sue their fellow directors. This is such a case where the board members derived substantial benefits from their relationships with the potential target of litigation the plaintiff demanded be brought. Under those circumstances, the futility of making a demand under Rule 23.1 was easily established.
Tags: Case Summaries, Derivative Claims, DirectorsShare