Lehrman v. Godchaux Sugars, Inc.

This application to require the plaintiff to give security pursuant to section 61-b of the General Corporation Law for the defendant’s reasonable expenses in this action *315again poses the question whether the action is brought derivatively in the right of the corporation, or whether it is representative, solely on behalf of the plaintiff and other stockholders similarly situated. The statute provides that in “ any action instituted or maintained in the right of any foreign or domestic corporation ” by the holder or holders of less than 5% of the outstanding shares of any class of its stock,…