Damages awarded in a shareholder's derivative suit go to the shareholder personally.

Question

Quizplus · Accepted Answer

Damages awarded in a shareholder's derivative suit go to the company, not the shareholder personally. The purpose of a derivative suit is to allow shareholders to bring a claim on behalf of the corporation, seeking damages that would benefit the company as a whole. If damages are awarded, they would be paid to the company, not directly to the shareholder.

Damages Awarded in a Shareholder's Derivative Suit Go to the Shareholder