shareholder's derivative action

shareholder's derivative action

n. a lawsuit by a corporation's shareholders, theoretically on behalf of the corporation to protect and benefit all shareholders, against the corporation for improper management. (See: derivative action)

References in periodicals archive ?
After the settlement, the company also came to an agreement regarding the shareholder's derivative action. To comply with Delaware law, the shareholder settlement had to be presented to, and accepted as fair and reasonable by, the Chancery Court.