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Director loses standing to sue when not re-elected

Director loses standing to sue when not re-elected

Director loses standing to sue when not re-elected

A director of a nonprofit corporation who brought suit against her fellow directors for breach of fiduciary duty has lost her standing to continue the litigation when not re-elected to the board in the annual elections, an appellate court in California has ruled. But her suit is not necessarily terminated because the Court remanded the case to the trial court to see if the state Attorney General would want to intervene or grant “relator status” to the director or another individual to carry the case forward. Debra Turner was a director and president of the Conrad Prebys Foundation, a nonprofit public benefit corporation, which operates as a private foundation and had assets of about $1.3...

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