Shareholders never have a right to bring a lawsuit on behalf of a corporation,as this is the job of the board of directors.

Question

Quizplus · Accepted Answer

Shareholders have the right to bring a lawsuit on behalf of a corporation, known as a derivative lawsuit, if the board of directors fails to take action on an issue or is acting against the best interests of the corporation. However, certain requirements must be met, such as holding a minimum number of shares and attempting to first address the issue through other means.

Shareholders Never Have a Right to Bring a Lawsuit on Behalf