York Properties, Inc. v. Neidoff

Defendants ’ motion to dismiss the complaint for alleged insufficiency and incapacity of plaintiff to sue for the relief demanded therein is based on the following specific grounds: (1) that a pledgee of corporate stock does not have legal capacity to maintain a derivative suit on behalf of the corporation; and (2) that the complaint fails to show affirmatively that the plaintiff was a stockholder at the time of . the transaction (General Corporation Law, §¿61).

While, as hereinafter indicated, the complaint requires amendment, defendants’ stated grounds of objection cannot be legally…