Abstract
Courts are increasingly abandoning the distinction between derivative and direct lawsuits in the context of the closely held corporation.' Where laws have traditionally required shareholders in a close corporation to bring a derivative action on behalf of the corporation, the close corporation exception to the derivative lawsuit requirement ("close corporation exception") allows individual shareholders to bring direct claims against the officers, directors, or shareholders of the closely held corporation for injuries which are ordinarily or primarily derivative in nature.
Recommended Citation
Donaldson, Peter H.
(2002)
"Breathing Life Into Aurora Credit Services, Inc. v. Liberty West Development, Inc.: Utah's Close Corporation Exception to the Derivative Lawsuit Requirement and the Case for Strong Fiduciary Duties in Close Corporations,"
Utah Law Review: Vol. 2002:
No.
3, Article 4.
Available at:
https://dc.law.utah.edu/ulr/vol2002/iss3/4