Shareholder's derivative action

{
  "id": "MLC-T-LAW-004521",
  "term": "Shareholder's derivative action",
  "field": "Law",
  "definition": "A lawsuit brought by a shareholder on behalf of a corporation against its directors, officers, or third parties for harm caused to the company. The shareholder acts as a representative of the corporation, seeking to recover damages or enforce rights that the corporation itself has failed to pursue. Any recovery from the lawsuit goes to the corporation, not directly to the individual shareholder.",
  "url": "https://mlchart.com/terminology/law/shareholder-s-derivative-action/"
}