Private Ordering in the Old Dominion: A Solution to Frivolous Litigation or the Elimination of a Fundamental Shareholder Right?
Shareholder litigation is an important mechanism in corporate law for holding directors accountable to shareholders. It provides a method by which shareholders can recover when directors breach their fiduciary duties to the shareholders or the corporation. Additionally, the threat of shareholder litigation acts as a deterrent to future management misconduct. Thus, the right to sue “forms part of the portfolio of monitoring and enforcement tools for policing whether managers are acting as loyal agents.”
*J.D. Candidate 2019, University of Richmond School of Law; B.A., 2015, University of Virginia. I would like to thank Professor Jessica Erickson for her invaluable guidance and feedback throughout the writing process. I would also like to thank the University of Richmond Law Review staff and editors, especially my final editor, Sora Ko, for their assistance in preparing this comment for publication.