Damages awarded in a shareholder's derivative suit go into the corporation's treasury.

Question

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When damages are awarded in a shareholder's derivative suit, they go into the corporation's treasury, not to the individual shareholders who initiated the lawsuit. This is because the lawsuit was brought on behalf of the corporation, and any damages awarded are intended to benefit the corporation as a whole, rather than any individual shareholder.

Damages Awarded in a Shareholder's Derivative Suit Go into the Corporation's