Turner v. Victoria
The court held that, under California nonprofit public-benefit corporation law, a director must maintain a continuous fiduciary relationship with the corporation to have standing to bring a derivative action, so that once a director's term ends and she is not re-elected she loses that standing, and consequently the judgments dismissing Turner's claims as a former.
Date Filed: August 17, 2021
Case Name: Turner v. Victoria
Case Number: D076318
Court: California Court of Appeal, Fourth Appellate District, Division One
(‘The Court holds that a director of a California nonprofit public‑benefit corporation must maintain a continuous fiduciary relationship with the corporation to have standing to bring a derivative action on its behalf; once the director’s term ends and she is not re‑elected, she loses that standing. Accordingly, the judgments dismissing Turner’s claims as a former director are affirmed, but the courts are instructed to allow a limited amendment to substitute a proper plaintiff (or consider Attorney‑General relator status). This decision clarifies that standing for derivative suits under the nonprofit public‑benefit corporation statutes is limited to current officers or directors, reinforcing the statutory scheme that reserves enforcement of corporate fiduciary duties to active insiders or the Attorney General.’, ‘c9adac9b’)
This case summary was prepared for educational purposes. For the authoritative version, please refer to the full opinion or the official California Courts website.