A shareholder can sue a corporation if it did not pay a preferred dividend and can also recover the expenses in bringing suit.

Question

Quizplus · Accepted Answer

A shareholder has the right to sue a corporation if it fails to pay a preferred dividend. Additionally, the shareholder can recover the expenses incurred in the process of bringing the lawsuit. However, this depends on the corporation's bylaws and state laws, which may vary.

A Shareholder Can Sue a Corporation If It Did Not