The proceeds,if any,of a derivative lawsuit go to
A)the shareholders of the corporation.
B)the shareholders who actually filed the lawsuit.
C)the board of directors.
D)the corporation.

Question

Quizplus · Accepted Answer

The proceeds, if any, of a derivative lawsuit go to the corporation. This is because a derivative lawsuit is brought on behalf of the corporation, not individual shareholders. Any damages or settlement amounts awarded to the corporation are used to benefit the company, which ultimately benefits all shareholders as the value of their shares may increase.

The Proceeds,if Any,of a Derivative Lawsuit Go to