Fact Pattern 35-1
Ray is a shareholder of Small Biz Company (SBC). When the direc?tors fail to undertake an action to redress a wrong suffered by SBC, Ray files a suit on the firm's behalf.
-Refer to Fact Pattern 35-1. Ray's suit is a shareholder's

Question

Fact Pattern 35-1 
Ray is a shareholder of Small Biz Company (SBC). When the direc?tors fail to undertake an action to redress a wrong suffered by SBC, Ray files a suit on the firm's behalf.
-Refer to Fact Pattern 35-1. Ray's suit is a shareholder's

Quizplus · Accepted Answer

Ray's suit is a derivative suit, which is a lawsuit brought by a shareholder on behalf of a corporation to assert a legal right that the corporation has failed to assert.