Gordon v. Elliman

Defendant moves to require plaintiff to provide security pursuant to section 61-b of the General Corporation Law. The action is brought by a stockholder to compel the corporation to declare dividends. The motion should be granted if the action is derivative, namely, one brought “ in the right of the corporation ’ ’. The motion should be denied if the action is representative, that is, one brought in the individual right of the stockholder in which other stockholders similarly situated may join.

In the broad definitions of derivative and representative actions between stockholders and their…