Derivative Action
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A lawsuit brought by a shareholder of a corporation on its behalf to enforce or defend a legal right or claim, which the corporation has failed to do.

A derivative action, more popularly known as a Stockholder's Derivative Suit, is derived from the primary right of the corporation to seek redress of legal grievances through the courts. The procedure to be followed in such an action is governed by the rules of federal Civil Procedure and state provisions, where applicable.

derivative action n. a lawsuit brought by a corporation shareholder against the directors, management and/or other shareholders of the corporation, for a failure by management. In effect, the suing shareholder claims to be acting on behalf of the corporation, because the directors and management are failing to exercise their authority for the benefit of the company and all of its shareholders. This type of suit often arises when there is fraud, mismanagement, self-dealing and/or dishonesty which are being ignored by officers and the Board of Directors of a corporation. (See: corporation)

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action Business Judgment Rule class action law suit corporate opportunity derivative shareholder shareholder's derivative action stockholder's derivative action Stockholder's Derivative Suit			of the Branstetter firm said the derivative suit is different from a class-action in that no class of plaintiffs needs to be certified for the case to move forward and the company itself is a defendant in name only. Dillard's investor's suit alleges mismanagement by Moritz, Gwen / Arkansas Business Abuses of executive compensation-provide no end to work for plaintiffs' lawyers pursuing class-action litigation against, and derivative suits on behalf of, companies that--in issuing options or stock to senior executives--expose themselves to the risk that these grants will be misused though backdating and insider trading. Key to avoiding compensation suits governance by Labaton, Edward; Stocker, Michael / Financial Executive A shareholder''s derivative suit is another sort of business litigation commonly brought about by one or a group of shareholders as a legal action to prevent or resolve a wrongful act against the corporation. Understanding the Shareholder's Derivative Suit by Mesriani Law Group / Law community			Derativa potestas non potest esse major primitiva derelict derelictio dereliction dereliction of allegiance dereliction of duty Derelicto deride deridere derisible derision derisive derisive language derivable derivare derivate derivation derivation from derivational derivative Derivative Action derivative authority Derivative Evidence derivative interest Derivative power Derivative suit derivative work derivatively derive derive by reasoning derive from derive pleasure from derived from derived from experience derived principle derogate derogation derogation of religion derogative derogatory derogatory criticism Derogatur legi derring-do derringdo Dershowitz, Alan Morton descant descend descend by inheritance descend from descend on descend to particulars			derivative investments Derivative market Derivative markets derivative network Derivative of a function Derivative of a function Derivative of a function Derivative of a function Derivative of a function Derivative of a function Derivative of a multivariable function Derivative of a multivariable function Derivative of Cyclic Adenosine Monophosphate Derivative of matrix Derivative of matrix Derivative of Myelin-Associated Glycoprotein Derivative of the logarithm Derivative operator Derivative operator derivative polarography Derivative power Derivative Risk Management System derivative rock Derivative securities Derivative security Derivative security Derivative security Derivative security Derivative security Derivative security Derivative suit Derivative Superposition derivative thermometric titration Derivative Truncated Sequential Test Program Derivative Ultra-Violet Absorption Spectrometer Derivative Unit Identification Code Derivative Warrant Liquidity Provider Derivative with respect to the variable U Derivative work Derivative works derivatively derivatively derivatively derivatively derivatively derivatively derivativeness derivativeness derivativeness derivativeness derivativeness derivativeness Derivatives Derivatives Derivatives Derivatives Derivatives Derivatives Derivatives Accounting Group Derivatives Clearing and Settlement System Derivatives Clearing Organization

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Derivative Action (redirected from Derivative suit)

Derivative Action
(redirected from Derivative suit)