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First Impression Question Concerning Removal Of Corporate Directors Submitted


Domina Law Group pc llo was engaged by a Thedford, Nebraska, corporation's majority shareholders, a husband and wife, owning more than eighty percent (80%) of the company's stock, to present appellate questions concerning the State's recently enacted, and previously unlitigated, law removing corporate directors from office.

Domina Law Group pc llo's brief to the Nebraska Supreme Court appealing a District Court decision in a case not handled by the firm, challenges the lower court's ruling removing Domina Law Group pc llo's clients from their positions as directors.

Nebraska's Legislature recently enacted a statute providing for the removal of corporate directors when sufficient evidence is produced on the subject. But, removal is permitted only where the evidence shows fraud, illegality, or other material matters having an adverse impact on the company's interests. No appellate court in Nebraska has considered the statute's language, or defined how its terms will be translated into a burden of proof, or a process of proof, in court.

"This important issue of first impression involving corporate governance questions is a vital one." David Domina explained, "The statute does not simply apply to Nebraska corporations. It applies to any corporation doing business in the state. Accordingly, Nebraska's Supreme Court must pass on a question which will influence what test, under Nebraska law, will govern removal of a director from a small closely-held corporation, like the one at issue in this case on the one hand, or a multi-national corporation doing business in Nebraska, on the other."

The case is not expected to be decided until 2007.

June 5, 2006
David A. Domina

Domina Law Group pc llo is a firm of trial lawyers. We specialize in complex litigation on a national basis. Our lawyers are ethical, aggressive, and committed to providing spirit and vitality to the judicial system and our client’s legal rights.

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