Ousted Directors Must Join Nonprofit in Suit to Recover Seats
Corporation is deemed a “necessary and indispensible” party for declaratory judgment
A suit invalidating the ouster of two directors of a nonprofit corporation has been reversed because the ousted directors sued only the other directors individually and did not join the corporation itself as a party to the action. An appellate court in Missouri has held that the corporation was a “necessary and indispensible” party to the declaratory action and failure to join it as a party to the suit required reversal of the trial court’s decision.
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