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.Any damages recovered by the suit will normally go to

Question

Quizplus · Accepted Answer

Any damages recovered by the suit will normally go to Energy Renew, as the suit was filed on the firm's behalf. Shareholders, including Don, do not directly receive the recovered damages unless the board of directors votes to distribute them as dividends or to repurchase shares. Directors also do not receive the damages as they have a fiduciary duty to act in the best interests of the corporation and not for personal gain.

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