Clyde and Fresno would not have much success in their lawsuit against the board of directors for taking the company in a new direction. The Board of Directors presented their plan to the shareholders and allowed them to vote. Most of the shareholders believed in the new plan that’s why presented an “overwhelming majority vote”. Under the business judgement rule, courts won’t hear a suit against the Board of Directors (Brown & Sukys, 2013). In order for Clyde and Fresno to get the court to hear a suit against the Board of Directors regarding the new plan is that they would have to prove the Board of Directors engaged in fraud, illegal activities, or was negligent when taking the company in a new direction (Izzi, n.d.)
If I was in the same position
If I was in the same position