Fact Pattern 40-1
Don is a shareholder of Energy Renew, Inc. When the directors fail to undertake an action to redress a wrong suffered by the corporation, Don files a suit on the firm's behalf.
-Refer to Fact Pattern 40-1. Don's suit is a shareholder's

Question

Quizplus · Accepted Answer

Don's suit is a derivative suit, which is filed by a shareholder on behalf of the corporation when the directors fail to act in the best interests of the corporation. The purpose of the derivative suit is to recover damages for harm done to the corporation. The other options do not accurately describe Don's suit.

Fact Pattern 40-1 Don Is a Shareholder of Energy Renew, Inc. When the Inc