The Delaware Court of Chancery in In re BGC Partners, Inc. Derivative Litigation, C.A. No. 2018-0722-AGB, memo. op. (Del. Ch. Sep. 30, 2019), found plaintiff’s allegations that directors received lucrative compensation for their service on the boards of entities controlled by nominal defendant’s controlling stockholder created reasonable doubt that the directors could impartially consider a litigation demand directed at the controller.
NEW: Canadian Lawyer discusses the decision in Delaware decision interprets director impartiality.
K&L Gates discusses the decision in Director Independence and Demand Futility: A Holistic Inquiry of the Pleading.