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By explicitly allowing shareholders to sue rogue directors on behalf of the company, it clarifies a right that the courts already recognise.
Following Fairhead's appointment she will oversee the appointment of five non-executive directors on behalf of the corporation, according to the Telegraph.
Hence US law allows individual shareholders to sue directors on behalf of the corporation in a so-called derivative action, in which the corporation is joined as nominal defendant.
The settlement, which will be covered by insurance, was brought against directors on behalf of shareholders and the money will be paid back to the company by the insurer.
The suit names 14 current and former directors and officials as defendants; it is known as a derivative action because shareholders of Countrywide are suing its officers and directors on behalf of the company.
The shareholder suit will be allowed only if the corporation's refusal to bring the suit is wrongful (hardly ever), or if demand is "excused" or "futile". Aronson is about this latter, practically relevant case: when is demand "futile" and a shareholder allowed to sue directors on behalf of the corporation?
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Kathleen B. Hearst, Executive Director On behalf of the Board of Trustees.
"The place is filled with paper, piles of it, everywhere," said Representative Jackie Speier, a Democrat from San Mateo who toured the Oakland office last month as part of a meeting with the agency's regional director on behalf of a group of constituents with claims dating as far back as six years.
On October 21, the selection committee chose Yasui, who worked with the Denver Commission on Community Relations for over 20 years, the last 16 as Executive Director, on behalf of diverse communities, not only Asian American but also Black, Latino, Native American, religious minorities, immigrants, youth, senior citizens, low income people.
The secretariats were required to approve each partner's annual and overall strategic plan and budget and make funding recommendations to the director on behalf of all partners.
The welcome address was delivered by Mr Huang Shaolong, Deputy Director, on behalf of Guangdong Province and Mr Huang Min, Deputy Mayor, on behalf the Shenzhen Municipal Government.
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