Woodman v. Ackerman

This is an appeal from orders of the superior court, in a corporate shareholders’ derivative action, granting motions of defendants below and respondents here, that plaintiffs (appellants here) be required to furnish security in accordance with the provisions of Corporations Code section 834.

Section 834 provides a procedure in a shareholders’ derivative suit for requiring a plaintiff therein to furnish security for the ‘ probable reasonable expenses ’ ’ of certain defendants. The section states in part that such defendants “shall have recourse to such security in such amount as the court…