Fact Pattern 6-1
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 6-1.Don's suit is a shareholder's

Question

Quizplus · Accepted Answer

Don's suit is a derivative suit because it is filed by a shareholder on behalf of the corporation when the directors fail to take action. In a derivative suit, the shareholder is seeking to enforce the corporation's rights and recover damages on its behalf.

Fact Pattern 6-1 Don Is a Shareholder of Energy Renew, Inc. When the Inc