When a corporation has been harmed by the actions of another person,the right to sue belongs to the ________,and any damages awarded by a court belong to the ________.
A)board of directors;shareholders
B)corporation;corporation
C)shareholders;corporation
D)corporation;shareholders

Question

Quizplus · Accepted Answer

When a corporation has been harmed by the actions of another person,the right to sue belongs to the corporation,and any damages awarded by a court belong to the corporation.Hence,as a general rule,a shareholder has no right to sue in his own name when someone has harmed the corporation,and he may not recover for himself damages from that person.This is the rule even when the value of the shareholder's investment in the corporation has been impaired.

When a Corporation Has Been Harmed by the Actions of Another