SIGFELD REALTY v. M. LANDSMAN

The IAS Court properly found that, due to a conflict of interest, plaintiff sponsor, owner of 78% of the shares in the cooperative corporation and the holder of the wraparound mortgage, was an improper party to commence a shareholder's derivative action ( see, Steinberg v Steinberg, 106 Misc 2d 720, 721). However, plaintiff should be accorded the right to seek leave to replead. We have considered plaintiffs remaining arguments and find them to be without merit.