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Business Organizations Keyed to Macey
Cuker v. Milkalauskas
Citation:
692 A.2d 1042 (1997)Facts
PECO is required to conform to PUC regulations which govern the provision of electric and gas service to residential customers. PECO is required to report regularly to the PUC on many statistical and performance information regarding its compliance with the regulations. Following the PUC report, one set of minority shareholders filed a demand on PECO, alleging wrongdoing by some PECO directors and officers. This Katzman demand asserted that the delinquent officers had managed PECO by mismanaging the credit and collection function. The shareholders demanded that PECO authorize litigation against the wrongdoers to recover monetary damages sustained by PECO. The board responded by creating a special litigation committee to investigate the Katzman allegations. Less than a month later, a second group of minority shareholders filed a complaint against PECO officers and directors. The report of the special committee concluded that there was no evidence of bad faith, self-dealing, concealment or other breaches of the duty of loyalty by any of the defendant officers.
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