The Supreme Court of North Carolina, withdrawing its prior decision, held that North Carolina courts cannot passively accept a recommendation to terminate shareholder litigation when made by a special litigation committee appointed by defendant directors, but must make an independent inquiry into the merits of the recommendation to determine whether the defendants have met their summary judgment burden of proof.
Alford v. Shaw,, 320 N.C. 465, 358 S.E.2d 323 (1987), rev'g, 318 N.C. 289, 349 S.E.2d 41 (1986).
Samuel R. Zuck,
Corporation Law - Shareholders' Derivative Actions - Special Litigation Committees - Business Judgement Rule,
Duq. L. Rev.
Available at: https://dsc.duq.edu/dlr/vol26/iss3/10