Shoen v. SAC Holding Corp.

OPINION

By the Court,

Hardesty, J.:

In resolving this appeal, we clarify when the demand for corrective action that a shareholder must make upon a company’s board of directors before filing a derivative suit may be excused as futile. Appellants Paul Shoen, Ron Belec, Glenbrook Capital, L.P., and Alan Kahn are shareholders in AMERCO, a Nevada holding company whose main subsidiary is U-Haul International, Inc. In 2002 and 2003, appellants filed four separate derivative suits, on behalf of nominal respondent AMERCO, against respondents who are (1) then-current and former AMERCO directors; (2)…