Recent legal filings referencing National Center for Public Policy Research (NCPPR) v. Schultz (the Starbucks case), are advancing a dangerous notion: that non-profit advocacy groups cannot be proper plaintiffs in shareholder derivative suits. This interpretation of the law, if left unchecked, fundamentally undermines shareholder democracy and corporate accountability, creating a convenient shield for boards to evade scrutiny over potentially harmful or illegal conduct. (Full disclosure: I am an employee of NCPPR.)
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