Alford v. Shaw

MARTIN, Justice.

The sole issue raised by this appeal is whether a special litigation committee’s decision to terminate plaintiff minority shareholders’ derivative action against defendant corporate directors is binding upon the courts. In our earlier opinion in this case, 318 N.C. 289, 349 S.E. 2d 41 (1986), we stated that the “business *467judgment rule,” a doctrine shielding the good faith actions of disinterested corporate directors from judicial inquiry on the merits, required deference to the decisions of independent special litigation committees. Consequently we held that summary judgment…