Greenspun v. Lindley

In the circumstances of this case we conclude that holders of beneficial shares of interest in this real estate investment trust who desire to challenge investment decisions of the trustees and the payment by them of what are alleged to be excessive management fees must first make a demand on the trustees before commencing what is the equivalent of a shareholders’ derivative action against the trustees individually.

Mony Mortgage Investors was organized as a business trust under the laws of the Commonwealth of Massachusetts to carry on business as a "real estate investment trust” as described…