Both the Business Corporations Act and the Limited Liability Company Act allow shareholders to bring derivative claims on behalf of the company. However, such claims cannot be initiated prior to a demand being made on the company to bring the claim or with a demonstration of futility in bringing the demand.
IND LAW litigates derivative claims and understands the steps that need to be taken to properly assert the claims or defend against the claims. Recently, IND LAW defended against derivative claims of a minority shareholder and obtained a favorable settlement following a week of trial testimony.
In 2018 IND LAW obtained a favorable settlement after 6 days of trial testimony for a majority shareholder who was accused of breaches of fiduciary duty and shareholder oppression. The case involved complex evidentiary issues unique to shareholder disputes.