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Alford v. Shaw
Supreme Court of North Carolina
320 N.C. 465, 358 S.E.2d 323 (1987)
Frank Alford and other minority shareholders (plaintiffs) of the All American Assurance Company, a North Carolina corporation, brought a shareholder derivative suit against Robert Shaw and other directors of the corporation (defendants). The plaintiffs alleged that the directors breached their fiduciary duties. The corporation’s special litigation committee recommended that the corporation terminate the litigation. The plaintiffs sought judicial review of the committee’s recommendation. The Supreme Court of North Carolina previously held that summary judgement was properly granted to the defendants. The court granted a rehearing of the case.
Rule of Law
Holding and Reasoning (Martin, J.)
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