A corporate defendant cannot invoke attorney-client privilege or the work-product doctrine against an active director who has filed a derivative lawsuit against the company and its board, the Delaware Court of Chancery has ruled. In issuing the opinion, which affirms a director's right to access privileged material, the court granted a plaintiff's motion to compel the production of documents related to the company's legal counsel's advice regarding a potential recapitalization.
Board Cannot Keep Information From Directors, Even in Litigation
Delaware Business Court Insider
May 1, 2013
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