Fact Pattern 31-1Ray is a shareholder of Small Biz Company (SBC). When the directors fail to undertake an action to redress a wrong suffered by SBC, Ray files a suit on the firm's behalf.
-Refer to Fact Pattern 31-1.Any damages recovered by Ray's suit will go to

Question

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Any damages recovered by Ray's suit will go to SBC, as Ray filed the suit on the firm's behalf. As a shareholder of SBC, Ray is entitled to a portion of any damages recovered, but the damages themselves belong to the company. The state in which SBC is incorporated and SBC's directors will not receive any damages from the suit.

Fact Pattern 31-1Ray Is a Shareholder of Small Biz Company