Foreign Corporations Filing Actions In California May Be Required To Post Bonds When Domestic Corporations Are Not
Posted on September 05, 2024

Under Section 1030 of the California Code of Civil Procedure, a defendant may at any time apply to the court by noticed motion for an order requiring the plaintiff to file an undertaking to secure an award of costs and attorney’s fees which may be...

Judge Rules Beneficial Owner of Shares Lacks Standing to Bring Direct Claims Against Corporation and its CEO
Posted on August 23, 2023

The plaintiffs in Chan v. ArcSOFT, Inc., 2023 WL 2788585, believed that they had been misled in a buyout of their shares and so they sued the company and its Chief Executive officer. One of the plaintiffs, Marc Chan, did not own shares in ArcSOFT...

Can One Shareholder Sue Another Shareholder For Breach Of Contract?
Posted on August 15, 2023

One popular theory of the corporation is that it is a nexus of contracts.  As Frank Easterbrook and Daniel Fischel pithily pronounced "Corporations are enduring (relational) contracts."F. Easterbrook and D. Fischel, The Economic Structure of...

Court Holds That Corporation Need Not Verify Its Answer
Posted on October 22, 2020

Section 446 of the California Code of Civil Procedure concerns the verification of pleadings.  Subdivision (a) provides that an answer to a complaint generally must be verified in either of two following circumstances:

1