Which of the following is true of a derivative action?

Question

Quizplus · Accepted Answer

A settlement of a derivative action requires court approval to ensure fairness to all parties involved.

Answer: B
 If a shareholder is successful in a derivative action, any damages awarded are typically awarded to the corporation, not solely to the shareholder.

Answer: C
 A derivative action is brought on behalf of the corporation by shareholders against an offending party, typically a member of the board of directors or officers.

Answer: D
 Board members may be held liable and subject to a derivative action if their actions caused harm to the corporation. They are not legally protected from such actions.

Which of the Following Is True of a Derivative Action