The Revised Act Requires Dismissal of a Derivative Suit If

question 73

True/False

The Revised Act requires dismissal of a derivative suit if qualified (disinterested) directors determine, in good faith after conducting a reasonable inquiry that maintenance of the derivative suit is not in the best interests of the corporation.

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Definitions:

Attributional Tendencies

The habitual ways a person explains the causes of their own and others' behaviors and events.

External Causes

Factors outside an individual that can influence their behavior or actions, such as environmental, social, or economic conditions.

Internal Causes

Factors within an individual, such as personal beliefs, attitudes, or emotions, that can influence their behavior or outcomes.

Ethnic Minority

A group within a community or nation that possesses different national or cultural traditions from the majority of the population.