A prominent mutual-benefit organization was sued by one of its members, who alleged that the board had manipulated election processes and improperly modified the corporate bylaws to entrench itself and make decisions that were not in the interests of the membership.
At trial the expert testified that the structure and actions of the board were consistent with norms for governance of mutual-benefit organizations and that the election information that the board had approved for distribution to members was correct in all material respects. The court ruled in favor of the defendant, and its ruling was upheld on appeal.
The court ruled in favor of the defendant, and its ruling was upheld on appeal.
A prominent mutual-benefit organization was sued by one of its members, who alleged that the board had manipulated election processes and improperly modified the corporate bylaws to entrench itself and make decisions that were not in the interests of the membership. Defense counsel retained Cornerstone Research and a former business school dean to assess the appropriateness of the board’s practices. The expert worked with Cornerstone Research to examine the board’s structure and actions as they related to norms of governance practices for mutual-benefit organizations, and also examined the materiality of the information that the board allegedly failed to communicate to the entire membership.
