Tag Archives: Jenness E. Parker

In the Name of the Company: When Stockholders Interfere in the Boardroom

by Jenness E. Parker and Elisa M. Klein

Takeaways

  • Corporations can face a wave of stockholder actions purporting to enforce the corporations’ own legal rights, from books and records requests to derivative suits and litigation demands.
  • In contrast to class actions, there are few established procedures for resolving these disputes in a centralized forum, so companies often find themselves responding to many similar demands and suits, sometimes in multiple jurisdictions.
  • Stockholder actions can be both expensive and distracting for companies to address, even though they are intended to benefit the company.
  • Companies can impose some order by requiring all derivative suits to be filed in one jurisdiction and by responding uniformly to all books and records demands.

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