Summers v. Colette

Plaintiff, while a director of a nonprofit public benefit corporation called Wildlife Waystation, filed suit against defendants alleging claims of self-dealing and misconduct. The trial court sustained defendants' demurrers to the complaint, which claimed that plaintiff no longer had standing when the Waystation board of directors removed her as a director. The Court of Appeal reversed and held that plaintiff did not lose standing to maintain this action when Waystation removed her as a director. Rather, she had standing under Corporations Code sections 5233, 5142, and 5223 at the time she instituted this action, and her subsequent removal as director did not deprive her of standing. The court also held that the trial court erred in sustaining the demurrer without leave to amend for failing to join the Attorney General as a indispensable party and notifying the Attorney General of the action. Accordingly, the court remanded with instructions. View "Summers v. Colette" on Justia Law