The shareholders of Congressional Airlines would have been successful in their suit against the directors when the deed had not been executed by filing duty-of-care, duty-of-loyalty, business-judgment rule, or derivative suit.
The shareholders could have stopped the directors by asking the court to mandate the directors not to carry through with their Boston flight plan. This action could have prevented the Airline from going bankrupt. Courts also entertain such suits when the rights of the shareholders would suffer harm by the directors' actions.
In this case, the shareholders would not be successful in bringing the suit against the directors because they acted in the ordinary line of their duties without intending to harm the shareholders' interest.
Thus, the circumstance that shareholders would be successful in such a lawsuit against directors is at the initial stage before the plan was put into action or immediately after, not when the Airline had become bankrupt.
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