Stockholder's derivative action

{
  "id": "MLC-T-LAW-004709",
  "term": "Stockholder's derivative action",
  "field": "Law",
  "definition": "A lawsuit brought by a shareholder on behalf of a corporation against a third party, often an officer or director, for harm caused to the corporation itself. The shareholder initiates the action when the corporation's board of directors fails to act to protect the company's interests. Any recovery from the lawsuit goes to the corporation, not directly to the individual shareholder.",
  "url": "https://mlchart.com/terminology/law/stockholder-s-derivative-action/"
}