September 2010

When the court appoints a receiver in a corporate dissolution proceeding, must a shareholder who thereafter seeks to bring a derivative action on the corporation’s behalf make a formal demand upon the receiver before filing the action? A recent decision by Nassau County Commercial Division Justice Timothy S. Driscoll, covered in this week’s New York Business Divorce, gives the answer.
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Continue Reading Court Requires Demand Upon Receiver for Derivative Action in Dissolution Case

Must a minority shareholder wait for the axe to fall before claiming oppressive conduct by the majority, or will a threat of oppressive conduct suffice to trigger statutory protection and the prospect of judicial dissolution? That’s the question addressed in this week’s New York Business Divorce as it looks at a Michigan court’s decision involving threatened oppressive conduct.
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Continue Reading Does Mere Threat of Shareholder Oppression Constitute Grounds for Corporate Dissolution?

A recent decision by Manhattan Commercial Division Justice Melvin Schweitzer in a corporate dissolution case called Matter of Darvish breaks new ground with respect to the disproportionate assessment against the shareholders’ distributive shares of a court-appointed receiver’s legal fees. It’s in this week’s New York Business Divorce.
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Continue Reading Court Charges Receiver’s Legal Fees in Corporate Dissolution Against 50% Shareholder’s Distributive Share Based on Misconduct

In a first impression decision handed down last month in Matter of Deblinger, Justice Stephen A. Bucaria upheld the court’s power to compel a respondent shareholder in a dissolution case to present a derivative claim against the petitioner-director. Catch it in this week’s New York Business Divorce.
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Continue Reading Can Court Compel Shareholder to Present Claim in Dissolution Proceeding?