Derivative lawsuits

Term · Insurance and risk management · MLC-T-INS-001140

Legal actions brought by shareholders on behalf of a corporation against its directors, officers, or other third parties for alleged harm to the company. The shareholders assert the corporation's rights because the board of directors has failed to do so. Any recovery from a derivative lawsuit typically goes to the corporation itself, not directly to the individual shareholders who initiated the suit.

Table 1. Record
Identifier	MLC-T-INS-001140
Field	Insurance and risk management
Subject	Management Liability

Record as JSON

{
  "id": "MLC-T-INS-001140",
  "term": "Derivative lawsuits",
  "field": "Insurance and risk management",
  "definition": "Legal actions brought by shareholders on behalf of a corporation against its directors, officers, or other third parties for alleged harm to the company. The shareholders assert the corporation's rights because the board of directors has failed to do so. Any recovery from a derivative lawsuit typically goes to the corporation itself, not directly to the individual shareholders who initiated the suit.",
  "subject": "Management Liability",
  "url": "https://mlchart.com/terminology/insurance/derivative-lawsuits/"
}

Record 954 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.