When a third party harms a corporation,only the shareholders can bring a suit in the corporation's name against that party.

Question

Quizplus · Accepted Answer

A corporation can bring a lawsuit in its own name to seek damages for harm caused by a third party. It is not necessary for only the shareholders to bring such a suit. However, shareholders may have the right to bring a derivative lawsuit on behalf of the corporation if the board of directors fails to act.

When a Third Party Harms a Corporation,only the Shareholders Can