In the case of Jung et al. v. K & D Mining Co., Inc., et al, 1957, the plaintiffs were shareholders who sued on behalf of a corporation to set aside fraudulent conveyances and recover damages for alleged mismanagement by corporate officers and directors. The Supreme Court held that under Illinois law, which governed this diversity action, a stockholder could not sue in his own name or right but must bring suit in the name of the corporation when he seeks relief against corporate insiders for wrongs done to it. It was also ruled that such an action may be maintained only if there is clear proof that those who control the corporation will not protect its rights.

The dissenting opinion in the case of Jung et al. v. K. & D. Mining Co., Inc., et al, argued that the majority's decision to uphold a lower court ruling dismissing an action brought by shareholders against their corporation was incorrect because it failed to consider important aspects of corporate law and governance principles. The dissent emphasized that minority shareholders should have the right to bring derivative suits on behalf of their corporations when those in control refuse or fail to do so, especially when there is evidence suggesting mismanagement or fraud by directors and officers as alleged in this case. They contended that such lawsuits serve as crucial checks on potential abuses within corporations and help ensure accountability among management for any misconduct detrimental to shareholder interests.