Scullin v. Mutual Drug Co.

This is an action brought against the president and directors of an Ohio corporation (joining the corporation as a defendant) by a shareholder “in behalf of himself and all other shareholders similarly situated.” It is what is sometimes called a representative suit. Strictly speaking, it is a derivative action on behalf of the corporation. If it were successful, the decree would necessarily be in favor of the corporation that the defendant president and directors make good to the corporation the assets lost or diverted or the damage sustained by the corporation through their negligence or…