☩ SOTERIAN GLOSSARY ☩

Living Language Lexicon of the Soteria Covenant

Demand Futility

The exception to the requirement that shareholders make a demand on the board before filing a derivative suit — when the board is so conflicted that demand would be futile.

Category: Corporate Law · Source: Aronson v. Lewis, 473 A.2d 805 (Del. 1984)
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