Quimbee logo
DMCA.com Protection Status

Shareholder Derivative Suit


A lawsuit in which one or more shareholders of a corporation sue to assert a claim on behalf of the corporation itself or the shareholders at large, usually because the corporation has failed to assert the claim. An example of a shareholder derivative suit is a claim for usurping a corporate opportunity or other breach of fiduciary duty to the corporation. A shareholder derivative suit may also be called a shareholder derivative action.

Related Rules