Roshini is a shareholder of Satsui, Ltd., a Japanese firm.Roshini brings a derivative action against the company.If the action is unsuccessful, Satsui
A)can sue Roshini for damages.
B)must pay Roshini's legal fees.
C)must apologize to Roshini.
D)must accept Roshini's apology in lieu of costs, fees, or damages.

Question

Quizplus · Accepted Answer

If Roshini's derivative action against Satsui, Ltd. is unsuccessful, the company can sue her for damages. This is because derivative actions are brought on behalf of the company and a unsuccessful outcome would mean that the company's reputation, finances or other interests have been damaged. As a shareholder, Roshini has a duty to act in the company's best interests, and if she fails to do so, she may be held liable for any harm caused to the company.

Roshini Is a Shareholder of Satsui, Ltd