Opinion ID: 515708
Heading Depth: 1
Heading Rank: 3

Heading: conclusion

Text: 39 The demand requirement is designed to require a shareholder to exhaust intracorporate remedies before bringing a corporate cause of action to the courts. The requirement reflects a judgment that a board of directors intimate with the facts of the case, possessing business expertise, and imbued with a legal duty to make evenhanded judgments that promote the corporation's best interests will usually be able to craft a resolution to a conflict with shareholders superior to a court's best effort. When, however, a plaintiff can provide the court with sufficient facts to justify an inference that the board is not worthy of that confidence and demand would be a pointless formality, the requirement may be excused as futile. On the other hand, when a plaintiff not only avoids making demand but then fails to provide the court with enough specific facts to demonstrate that demand would be futile, the plaintiff will not be excused from a requirement that in practical terms is not particu larly daunting in the first place. 12 40 Gaubert has made it clear that he had serious differences with IASA's final board. But without a particularized showing that the individual members of this board, who continued to operate under fiduciary duties of fidelity to IASA's best interests, could not or would not have granted an impartial hearing to Gaubert's demand for action, the district court was within its authority under Federal Rule 23.1 to dismiss his complaint. 41 Affirmed.