Rose v. Schantz

The demurrer here challenged: (1) The derivative cause of action; (2) the direct stockholder action; and (3) the joinder of causes of actions and parties. Each involves a separate area of inquiry, and will be so approached.

Derivative action.

We deal here with the statutory restrictions surrounding the bringing of stockholders’ derivative actions. 1 Particularly, we deal with sec. 180.405 (1) (b), Stats., requiring in any such action that:

“(1) No action may be instituted or maintained in the right of any domestic or foreign corporation by the holder or holders of shares or of voting trust…