This Recent Development examines the legal background of the shareholder derivative suit and the business judgment rule and then traces the evolution of the offensive use of the business judgment rule in board of director terminations of stockholder derivative actions. After examining other derivative suit dismissal decisions, the Recent Development analyzes whether Zapata adequately balances the competing interests of the shareholder and the corporate board. Finally, the Recent Development discusses the potential effect of Zapata on future litigation.
David A. Beyer,
Business Judgment Dismissal of Shareholder Derivative Suits by Board Litigation Committees: An Expanded Role for the Courts,
35 Vanderbilt Law Review
Available at: https://scholarship.law.vanderbilt.edu/vlr/vol35/iss1/5