Minority shareholders of Midwest Technical Institute Development Corporation, a closed-end investment company owning assets consisting principally of

Question:

Minority shareholders of Midwest Technical Institute Development Corporation, a closed-end investment company owning assets consisting principally of securities of companies in technological fields, brought a shareholder derivative suit against officers and directors of Midwest, seeking to recover on Midwest’s behalf profits that the officers and directors realized through dealings in stock held in Midwest’s in breach of their fiduciary duty. Approximately three years after commencement of the action, a new corporation, Midtex, was organized to acquire Midwest’s assets. May the shareholders now add Midtex as a party defendant to their suit? Why?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...