A shareholder derivative suit is brought by a minority shareholder,but any recovery inures to the corporation.

Question

Quizplus · Accepted Answer

A shareholder derivative suit is initiated when the corporation is being harmed or defrauded and neither the board nor the senior executives will take action to protect it.This often involves self-dealing by these parties.The suit is brought by a minority shareholder,but any recovery inures to the corporation.

A Shareholder Derivative Suit Is Brought by a Minority Shareholder,but