Explain the Significance of Estelle V.Gamble (1976)

question 19

Essay

Explain the significance of Estelle v.Gamble (1976).

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Definitions:

Derivative Action

A lawsuit in which certain shareholders are given the right to launch a civil action against the directors on behalf of an injured corporation; also called a representative action.

Fraudulent Acts

Intentional deception made for personal gain or to damage another individual.

Negligent

Failing to take proper care in doing something, leading to damage or injury to another.

Pre-emptive Rights

Legal rights granted to existing shareholders to purchase additional shares in a corporation before new shares are offered to the public, to maintain their proportional ownership.