Triston is one of a number of shareholders of TVG Group Inc.who lost a substantial sum by relying on the negligently prepared audit of the company's previous fiscal year's financial circumstances.Which of the following would strongly support a viable avenue of recourse for these shareholders against the negligent professional?

Question

Quizplus · Accepted Answer

A derivative action on behalf of the company allows shareholders to sue for damages that the company has suffered due to the negligence of a third party, such as an auditor. This can indirectly benefit the shareholders by potentially recovering losses the company incurred, which may, in turn, improve the company's financial health and thus the value of the shareholders' investments.

Triston Is One of a Number of Shareholders of TVG