S. Shareholder Derivative Action Litigation

• Library: South Carolina Damages (SCBar) (2009 Ed.)

S. Shareholder Derivative Action Litigation

Representative Actions in the form of shareholder derivative litigation are authorized by Rule 23(b)(1), SCRCP, as follows:

(b)(1) Derivative Actions by Shareholders. In a derivative action brought by one or more shareholders or members to enforce a right of a corporation or of an unincorporated association, the corporation or association having failed to enforce a right which may properly be asserted by it, the complaint shall be verified and shall allege that the plaintiff was a shareholder or member at the time of the transaction of which he complains or that his share or membership thereafter devolved on him by operation of law. The complaint shall also allege with particularity the efforts, if any, made by the plaintiff to obtain the action he desires from the directors or comparable authority and, if necessary, from the shareholders or members, and the reasons for his failure to obtain the action...