Can one of the shareholders both sue your former CEO for fraud and contact all the other shareholders? Apparently.
That’s what happening at Uber. “Kalanick Critic Stirs the Pot,” The Wall Street Journal, August 15, 2017 B1. Benchmark Capital (which also sits on the Board) sued the former CEO at Uber for fraud, saying he had failed to disclose “secret bad business practices,” which may revolve around the CEO’s increase in the number of directors, or allegations about sexual harassment and sexism. While Uber searches for a new CEO, it is managed by a 16-person committee. How’s that working for you?
Apparently, derivative actions aren’t a shareholder’s sole remedy. And a board member can sue as an individual shareholder.