An individual owner of a closely held corporation may not directly sue a director over alleged breach of duty to the company, the state Superior Court has ruled, holding that under Pennsylvania law such an action should be pursued as a derivative action on behalf of the corporate entity.
In Hill v. Ofalt, the frontline appeals court rejected a provision of the American Law Institute’s corporate governance principles that say a court may treat those derivative claims as a direct action.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
