The person bringing a derivative suit does not need to:
A)fairly and adequately represent the interests of similarly situated shareholders.
B)hold a majority of the shares.
C)be a current shareholder.
D)have held shares at the time of the alleged wrongdoing.

Question

The person bringing a derivative suit does not need to:
A)fairly and adequately represent the interests of similarly situated shareholders.
B)hold a majority of the shares.
C)be a current shareholder.
D)have held shares at the time of the alleged wrongdoing.

Quizplus · Accepted Answer

To discourage strike suits,the person bringing the action must be a current shareholder who also held his shares at the time the alleged wrong occurred.In addition,the shareholder must fairly and adequately represent the interests of shareholders similarly situated in enforcing the right of the corporation.

The Person Bringing a Derivative Suit Does Not Need To