Fact Pattern 40-1
Don is a shareholder of Energy Renew, Inc. When the directors fail to undertake an action to redress a wrong suffered by the corporation, Don files a suit on the firm's behalf.
-Refer to Fact Pattern 40-1. Any damages recovered by the suit will normally go to

Question

Quizplus · Accepted Answer

When a shareholder files a suit on behalf of a corporation, any damages recovered by the suit generally go to the corporation (Energy Renew), not to the individual shareholders. This is because the shareholder is suing on behalf of the corporation, not in his or her individual capacity. Therefore, the damages would benefit Energy Renew as a whole, rather than any individual shareholder, including Don.

Fact Pattern 40-1 Don Is a Shareholder of Energy Renew, Inc. When the Inc