Singh

INTRODUCTION

Minority shareholders of a cooperative filed a complaint against the cooperative, claiming its voting procedures violated the Corporations Code. The cooperative responded by filing a special motion to strike under Code of Civil Procedure section 425.16. The trial court denied the motion. The cooperative appeals from the order of denial, contending the trial court erred in concluding the challenged conduct did not arise from protected activity. We reverse.

FACTUAL AND PROCEDURAL SUMMARY

In September 2011, Avtar Singh and Mikhail Gershman filed a verified complaint against LA Checker Cab Cooperative, Inc. (Checker Cab), Yuriy Bartel, Arsen Derderian, Igor Shteynberg, Mikail Shef, Mikail Sher, Suren Gevorkian, Boris Rozman, Roman Petrossian, Marat Khavkin and Robert Moussalian, seeking to (1) declare invalid under Corporations Code section 12480 the December 2010 Checker Cab Board of Directors election; (2) to order a new election of the Board of Directors as provided in Corporations Code section 12485; (3) to prohibit further use of illegal bylaws and (4) to award payment of legal fees and costs.1 According to the allegations of the complaint, in conducting its most…