Washington Supreme Court Adopts Delaware Standard For Shareholder Derivative Actions
How does Washington corporate law determine whether a shareholder's derivative complaint should be dismissed for failure to make a demand on the corporation? The Washington Supreme Court had this say:
"In a well reasoned opinion, Judge Thomas Zilly of the federal trial bench concluded that Washington would likely follow Delaware’s demand futility standard. In re Cray, Inc., 431 F. Supp. 2d 1114, 1121 (W.D. Wash. 2006) (citing Rales, 634 A.2d at 932 & n.4 and Aronson, 473 A.2d at 814). We agree. Delaware’s courts are well versed in this area. Until our legislature declares otherwise, Washington is a demand futility state and follows Delaware."
You can read the opinion here.
