A Shareholder May Bring a Derivative Suit on Behalf of the Corporation

question 5

True/False

A shareholder may bring a derivative suit on behalf of the corporation and any recovery usually goes to the corporation's treasury,or a shareholder may bring a direct suit to enforce a claim he has against the corporation based on his ownership of shares and any recovery goes to the shareholder plaintiff.

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Definitions:

Direction

In context to electrical and magnetic fields, it refers to the path along which something moves, points, or faces.

Principle Parts

The essential components or sections of a mechanism or system that are critical to its functioning.

Atom

The smallest constituent unit of ordinary matter that constitutes a chemical element.

No Charge

A state or condition where an object does not have a net electrical charge, meaning it has an equal number of protons and electrons.