On May 29, the Texas Supreme Court issued its decision in Sneed v. Webre, in which it tackled two issued regarding shareholder derivative suits involving closely held corporations: First, whether these suits may be barred by the business judgment rule, and, second, whether Texas recognizes the "double-derivative" standing of a parent company's shareholder tof sue on behalf of a subsidiary. In an important win for shareholders' rights after Ritchie v. Rupe, the Supreme Court answered both questions in favor of the shareholder.
The U.S. Department of Labor is considering new rules to protect retiree-investors by cracking down on arrant investment brokers. The rules would help ensure that retired investors, many of whom rely on their retirement investment accounts to provide for them in old age, are not taken advantage of by brokers harboring undisclosed conflicts of interest. Under the proposed rules, the brokers would be required by law to do what commonsense and basic scruples should dictate anyway: act in the best interest of the retirees who give them their money to invest.