derivative action

derivative action
An action brought by one or more stockholders of a corporation to enforce a corporate right or to prevent or remedy a wrong to the corporation in cases where the corporation, because it is controlled by the wrongdoers or for other reasons, fails and refuses to take appropriate action for its own protection. Price v Gurney, 324 US 100, 89 L Ed 776, 65 S Ct 513.

Ballentine's law dictionary. . 1998.

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  • derivative action — n: a suit brought by a shareholder on behalf of a corporation or by a member on behalf of an association to assert a cause of action usu. against an officer which the corporation or association has itself failed to assert for its injuries –… …   Law dictionary

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  • derivative action — noun or derivative suit : a suit by a shareholder to enforce a corporate cause of action based upon a right of the corporation …   Useful english dictionary

  • derivative action — n. derivative suit, legal suit filed by a shareholder in the name of a corporation …   English contemporary dictionary

  • stockholders' derivative action — n.    See also: derivative action, shareholders derivative action Law dictionary. EdwART. 2013 …   Law dictionary

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