In Re China Automotive Systems Inc. Derivative Litigation, C.A. 7145-VCN (August 30, 2013)
The rules for determining when demand on the directors is excused apply even to Chinese-based companies despite their bad press. This decision in a direct and clear way spells out when demand is not excused. For example, merely being on the audit committee does not mean a director faces a serious risk of personal liability for auditing mistakes. More "red flags" are required.