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Vanderbilt Law Review

First Page

889

Abstract

The stockholders' derivative suit has been of increasing prominence during the past several decades. As an action in equity instituted by individual stockholders, the suit is representative in nature in that the stockholder prosecutes the action for all stockholders who are similarly situated. Yet, as the suit is in behalf of the corporate entity and not the stockholders personally, it is derivative.'

As in most other areas of corporate law in southern jurisdictions,there exists no comprehensive body of statutory or case law dealing with all facets of stockholders' derivative suits. The greater part of the body of law in this field has been developed in those jurisdictions which are the nation's commercial centers. As one of the incidents of industrialization and expanding corporate activity, the stockholders'derivative suit can be expected to become a more familiar problem to the courts of the southern states. The purpose of this note is to indicate by comparison the present status of the stockholders' derivative suit in the following southern jurisdictions: Alabama, Arkansas,Florida, Georgia, Kentucky, Mississippi, North Carolina, South Caroline, Tennessee and Virginia.

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