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Case Citations (March 2016 through June 2016) [i] (2016)

handle is hein.ali/alicgv0087 and id is 1 raw text is: PRINCIPLES OF THE LAW OF CORPORATE GOVERNANCE PART VII. REMEDIES CHAPTER 1. THE DERIVATIVE ACTION § 7.01 Direct and Derivative Actions Distinguished D.N.M.Bkrtcy.Ct.2015. Subsec. (d) quot. in ftn. Minority shareholder of limited-liability company and shareholder's wife brought an action against Chapter 7 debtor/majority shareholder and debtor's wife, seeking to have a debt declared nondischargeable under the Bankruptcy Code as one incurred by fraud, alleging that defendants embezzled and fraudulently misappropriated company's funds for their personal use. This court entered judgment in part for defendants, holding that plaintiffs lacked standing to bring their claims, which were derivative and not direct claims. Citing Principles of the Law of Corporate Governance § 7.01(d), the court noted that it could relax the traditional distinction between derivative and direct suits in the context of a closely-held corporation, but explained that doing so in this case would materially prejudice third-party creditors and would allow plaintiffs to circumvent the statutory- distribution scheme. In re Patel, 536 B.R. 1, 19. A mU For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination. ------ - ------- -------- ----------- --- -------- - ------- -------- ----------- --- -------- - ------- -------- ----------- --- -------- - ------- -------- ----------- --- -------- - ------- -------- ----------- --- -------- - ------- -------- -----------

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