Skyline Manor, Inc. v. Rynard
Annotate this CaseEmerson Link was elected as the resident director of Skyline Manor, Inc., a Nebraska non-profit corporation without members whose management was vested in a board of directors. Skyline owns the Skyline Retirement Community (SRC) in Omaha. After attending and participating in a board meeting, Link filed a derivative action on behalf of Skyline, alleging that five of Skyline’s directors had engaged in financial mismanagement. The district court dismissed the complaint, concluding that Link lacked standing to bring the derivative action because, at the time Link was elected as the resident director, Skyline was not operating SRC as a retirement community, and therefore, Link’s election was null and void. The Supreme Court reversed, holding that Link had standing to bring this derivative action because Link was duly elected as the resident director and was serving in that capacity at the time he filed the derivative action. Remanded.
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