| law |
derivative complaint (SergeyL); derivative suit (Anton S.); derivative claim (A litigation claim brought by a stockholder on behalf of a corporation against a corporation's management or board of directors typically alleging breach of fiduciary duty, fraud or mismanagement. The procedure for a derivative claim is governed by state law, but typically a stockholder must 1) have been a stockholder at the time of the alleged wrong doing; 2) retain ownership throughout the litigation; 3) make a demand on the board of directors to take corrective action or show that such a demand would be futile. 'More); derivative action (a lawsuit brought by a corporation shareholder against the directors, management and/or other shareholders of the corporation, for a failure by management. 'More) |
