Lynn v. Martin County Marine Corp.

This appeal arises out of a shareholder’s derivative action, in which the shareholders who filed the action subsequently sold their shares to a third party. The trial court ruled that the third party did not have standing to pursue the derivative action, but we reverse.

The Lynns owned fifty percent of the shares of stock of Martin County Marine Corporation, and the Nickersons owned *537the other fifty percent. The Lynns filed this derivative action alleging improprieties in the management of the corporation by the Nickersons, but then sold their shares, and assigned their rights in this action,…