TBA Law Blog

Posted by: Stacey Shrader Joslin on Jul 12, 2016

In a case involving claims between siblings who were shareholders in a closely held family corporation, the Tennessee Supreme Court today adopted a new standard for when a shareholder can file a direct lawsuit on claims that concern the corporation. The decision overturned a ruling by the Court of Appeals and set aside Tennessee’s prior standard. In its place, the court adopted a standard used in Delaware that “is clear and easily understood” and “should facilitate consistent and predictable outcomes in disputes involving shareholder claims.” Chattannoogan.com has the story.