Minority shareholders of Midwest Technical Institute Development Corporation, a closed-end investment company owning assets consisting principally of securities of companies in technological fields, brought a shareholder derivative suit against officers and directors of Midwest, seeking to recover on Midwest's behalf the profits the officers and directors realized through dealings in stock held in Midwest's portfolio in breach of their fiduciary duty.
Approximately three years after commencement of the action, a new corporation, Midtex, was organized to acquire Midwest's assets. May the shareholders now add Midtex as a party defendant to their suit? Why?