Legal Opinion
Barth v. Barth
Indiana Supreme Court
Decided December 29, 1995No. 49S02-9510-CV-1216PublishedCited by 71 opinions
1Opinion of the Court
SULLIVAN, Justice.
Should a shareholder in a closely-held corporation who alleges misuse of corporate assets be permitted to sue the corporation in a direct action, rather than proceed with a derivative action? We conclude that direct actions are permissible in certain cireum-stances and adopt as our rule in this regard § 7.01(d) of the American Law Institute's Principles of Corporate Governance.
Background
This lawsuit was brought against defendants Barth Electric Co., Inc., and its president and majority shareholder Michael G. Barth, Jr., by plaintiff minority shareholder Robert Barth…
2Cases cited15 opinions
- Donahue v. Rodd Electrotype Co. of New England, Inc.Massachusetts Supreme Judicial Court · 1975
- W & W Equipment Co., Inc. v. MinkIndiana Court of Appeals · 1991
- Sutter v. General Petroleum Corp.California Supreme Court · 1946
- Moll v. South Central Solar Systems, Inc.Indiana Court of Appeals · 1981
- Victor Schaffer v. Universal Rundle Corporation, Universal Rundle Corporation v. Victor SchafferCourt of Appeals for the Fifth Circuit · 1968
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3Cited by71 opinions
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- Werbowsky v. CollombCourt of Appeals of Maryland · 2001
- Landstrom v. ShaverSouth Dakota Supreme Court · 1997
- G & N AIRCRAFT, INC. v. BoehmIndiana Supreme Court · 2001
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