Question
City Car Wash, Inc. (CCW) owns and operates several car washes in the Greater Orlando Area.The Company has has seven directors, four of whom are
City Car Wash, Inc. ("CCW") owns and operates several car washes in the Greater Orlando Area.The Company has has seven directors, four of whom are brothers and sisters of one another. The other three directors are not related. One of the brothers on the CCW board quietly opens a luxury car detailing business that competes with CCW.A CCW shareholder learns about the luxury car detailing business and wants to sue the director behind the competing enterprise. May the shareholder commence a derivative action against the director running the luxury car detailing business?
A. No, the action would be direct, not derivative.
B. No, because the proper defendant in a derivative action is the corporation, not a director.
C. Yes, but only if the shareholder first makes a written demand of the corporation and the corporation.
D. Yes, and a written demand is not required under the facts given.
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