Sorin v. Shahmoon Industries, Inc.

The plaintiffs in the present derivative stockholders’ action have heretofore been ordered to post security for expenses, pursuant to section 61-b of the General Corporation Law (30 Mise 2d 429). They now move for reargument. They urge that I overlooked my prior decision after trial requiring the defendants to account (30 Mise 2d 408, 422 et seq.). They argue that the corporation can be entitled to security only where it may become liable to other parties for expenses pursuant to section 64, and that, in the present case, no such liability will be possible since the defendants have, after…