Kaufman v. Belmont

HARTNETT, Vice Chancellor.

Defendants moved to dismiss this action or in the alternative for a summary judgment of dismissal because of the plaintiff’s failure to make a demand on the Board of Directors of the corporation prior to instituting suit, as is required by Chancery Court Rule 23.1. The motion must be granted.

I

This stockholder’s derivative action, brought in 1978 on behalf of the stockholders of Philip A. Hunt Chemical Corporation (“Hunt”), alleges that certain directors acted unlawfully by allowing certain of Hunt’s officers, who held outstanding stock options, to gain substantial…