Crow v. Context Industries, Inc.

HENDRY, Judge.

Appellant-plaintiffs, shareholders and directors of the parent corporation, instituted a stockholders’ derivative action to enforce the rights of the parent corporation concerning the sale of certain assets of its wholly owned subsidiary. They seek review of a final summary judgment entered in favor of appellee-defendants, who are the directors of the parent and the former president of the subsidiary.

We affirm. Appellants lack the capacity to sue in behalf of the subsidiary, which would be the party entitled to bring action for certain of the rights allegedly violated, because…