Einhorn v. Culea
Wisconsin Supreme Court
612 N.W.2d 78 (Wis. 2000)
Relevant factsFree
A shareholder brought a derivative action against the corporation, which convened a special litigation committee under Wisconsin's corporate statute to determine whether the suit served the corporation's best interests. The parties disputed whether the committee's members actually qualified as "independent" directors as the statute requires for the court to defer to the committee's business judgment.
IssueFree
Whether a corporation may create a special litigation committee composed of independent directors to determine whether a derivative action is in the corporation's best interests.