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The Shareholder Derivative Suit In Arkansas, Mary E. Matthews
The Shareholder Derivative Suit In Arkansas, Mary E. Matthews
Mary E Matthews
The Arkansas authorities governing derivative claims deviate from the authorities governing direct claims to a greater extent than is necessary. Three statutes govern shareholder derivative suits in Arkansas: the 1965 Arkansas Business Corporation Act (the 1965 ABCA); Arkansas Rule of Civil Procedure 23.1 (Rule 23.1); and the 1987 Arkansas Business Corporation Act (1987 ABCA). While the statutes occasionally conflict with Rule 23.1, the general goal is to prevent “strike suits.” Further, the Arkansas Supreme Court’s interpretation of the authorities suggests conflicts will be resolved in favor of the Rule. These statutes provide procedural restrictions for shareholder derivative suits. There are …