Was it Futile? The Legislature Changed the Law, But the 'Futility Exception' Lives On in Our Courts
Connecticut’s corporation statutes allow shareholders to sue directors on behalf of the corporation. The statutes require the shareholder to first make demand on the corporation to take suitable action in all such cases. However, our superior courts have been disregarding this requirement when such a demand is deemed “futile.” There are pros and cons to the statutory and the judicial positions.
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