If Eilene, a Shareholder, Sues in a Derivative Suit, the Judgment

question 7

Multiple Choice

If Eilene, a shareholder, sues in a derivative suit, the judgment will be paid to:

• A) the board of directors.
• B) the shareholders as a dividend.
• C) Eilene directly.
• D) the corporate treasury.

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Definitions:

Contract Law

The body of law that governs the formation, execution, and enforcement of agreements between parties.

Limitation

A restriction or bound; in legal terms, it refers to the maximum time period within which legal action can be initiated.

Equitable Remedies

Judicial awards made to fairly resolve a legal issue or dispute, including injunctions, specific performance, and rescission, based on principles of equity rather than fixed law.

Types

Varieties or categories of objects, individuals, or concepts that share common characteristics.