Shareholder derivative suit

{
  "id": "MLC-T-LAW-004518",
  "term": "Shareholder derivative suit",
  "field": "Law",
  "definition": "A legal action initiated by a shareholder in the name of the corporation against a third party, often the company's own directors or officers. The shareholder alleges that the corporation has suffered harm and that its management has failed to take appropriate legal action to redress it. Any financial recovery from the lawsuit goes to the corporation's treasury, not directly to the plaintiff shareholder.",
  "url": "https://mlchart.com/terminology/law/shareholder-derivative-suit/"
}