Definition from Nolo’s Plain-English Law Dictionary
A lawsuit brought by a shareholder against the corporation's directors, other shareholders of the corporation, or a third party for failure of management or fraud. The suing shareholder sues on behalf of the corporation (usually because the directors are failing to exercise their authority for the benefit of the company), and any proceeds of a successful action are awarded to the corporation and not to the suing shareholder.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:14 pm