When a corporation has suffered an injury,the corporation may sue the wrongdoers to recover its losses.However,if the directors themselves are the wrongdoers,they are not likely to authorize the commencement of any action against themselves.The common law recognizes the right of a minority shareholder to start an action on behalf of the corporation,and this is referred to as

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The common law recognizes the right of a minority shareholder to start an action on behalf of the corporation, which is referred to as a derivative action. This allows the corporation to recover losses caused by the wrongdoing of directors or officers who themselves may not authorize an action against themselves. The other options mentioned (appraisal action, winding up action, insider action, and locked-in action) are not relevant to this scenario.

When a Corporation Has Suffered an Injury,the Corporation May Sue