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The Business Judgment Rule in Shareholder Derivative Litigation II: the Special Litigation Committee

This is the second of two lessons that examine aspects of shareholders' derivative litigation and the role played in such litigation by the business judgment rule. This lesson focuses on the Special Litigation Committee. It is recommended that you complete the first lesson (The Business Judgment Rule in Shareholder Derivative Litigation I: Demand Upon the Board) before beginning this one. The author also assumes you have completed or are currently enrolled in a basic Business Associations or Corporations course, and are therefore familiar with the fundamentals of corporate governance, the basic structure of shareholders' derivative litigation and the working of the business judgment rule. If you are unfamiliar with the business judgment rule, you should complete CALI lesson Business Judgment Rule before proceeding further with this one.

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