Pennsylvania Consolidated Statutes

15 Pa. Cons. Stat. § 517 (2026)

 Limitation on standing.

✓ current as of May 2026
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§ 517.  Limitation on standing.

The duty of the board of directors, committees of the board and individual directors under section 512 (relating to standard of care, justifiable reliance and business judgment rule) is solely to the domestic corporation and not to any shareholder, member or creditor or any other person or group, and may be enforced directly by the corporation or may be enforced by an action in the right of the corporation, and may not be enforced directly by a shareholder, member or creditor or by any other person or group. Notwithstanding the preceding sentence, sections 515(a) and (b) (relating to exercise of powers generally) and 516(a) (relating to alternative standard) do not impose upon the board of directors, committees of the board and individual directors any legal or equitable duties, obligations or liabilities or create any right or cause of action against, or basis for standing to sue, the board of directors, committees of the board and individual directors.

(Nov. 3, 2022, P.L.1791, No.122, eff. 60 days)

Notes of Decisions
Cited in 3 cases, 2010–2016 · leading case: Commonwealth v. Janssen Pharmaceutica, Inc., 8 A.3d 267 (Pa. 2010).
Commonwealth v. Janssen Pharmaceutica, Inc., 8 A.3d 267 (Pa. 2010). · cites it 2× “, 15 Pa.C.S. §§ 517 (corporations generally), 1717 (domestic business corporations), 5717 (domestic non-profit corporations) (limiting standing of different types of corporations' individual directors, board of directors and committees of board to sue board of directors,…”
Harold C. Lampe, Jr V., 665 F.3d 506 (3rd Cir. 2011). “15 Pa. Cons.Stat. Ann. § 517 (West 2011); see In re Insulfoams, Inc.”
Kitty Ward Travel v. Ward, T. (Pa. Super. Ct. 2016). “Marianne and Bridget pled therein that they were officers and shareholders of KWT and that they were bringing the action in the right of the corporation pursuant to 15 Pa.C.S. §§ 517, 1782. Complaint, 1/19/10, at ¶81.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.