Director Does Not Lose Standing to Sue For Breach of Duty When Not Re-elected to Board
California Supreme Court reverses appellate court decision, and holds that “continuous relationship” is not required
The California Supreme Court has overruled an appellate court decision that said that a director of a charitable corporation suing other directors for breach of fiduciary duty lost her standing to sue when she was not re-elected to the board during the litigation. (See Nonprofit Issues® Vol. XXXI, No. 3.). The Supreme Court has unanimously held that “continuous relationship” is not required to continue the litigation under the state’s Nonprofit Corporation Law.
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