Breaking with another court, New York’s Appellate Division, 1st Department, ruled Thursday that limited liability corporation members have standing to bring derivative actions for their companies, even though no state law expressly authorizes such suits. Writing for a unanimous panel, Justice George D. Marlow relied on the common law right to derivative suits for support, and found less relevant the fact that a provision to allow such suits apparently was dropped to win passage of a limited liability law.
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Posted on Saturday, February 10th, 2007. Filed under: Business Law, Law Misc
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