If a fraud is committed by a member of the board of directors of a corporation, a written notice to the corporation from individual shareholders is not required to bring a derivative lawsuit.

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In a derivative lawsuit, the shareholder sues on behalf of the corporation for harm done to the corporation by a director or officer. Generally, the shareholder must first demand that the corporation take action to address the harm before filing a lawsuit. However, if the harm alleged involves wrongdoing by members of the board of directors, a written demand may not be required under certain circumstances, such as if the board is conflicted or there is reason to believe they would not act in the best interest of the corporation. Therefore, in such cases, a written notice to the corporation from individual shareholders is not required to bring a derivative lawsuit.

If a Fraud Is Committed by a Member of the Board