If a Shareholder's Derivative Action Succeeds the Suing Shareholder Is

question 69

Multiple Choice

If a shareholder's derivative action succeeds the suing shareholder is entitled to:

• A)compensation for the time he devoted toward the lawsuit.
• B)compensation from the other shareholders.
• C)reimbursement of any costs and fees incurred in bringing the action.
• D)reimbursement of his reasonable attorney's fees that he incurred in bringing the action.

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Definitions:

Rescind Agreement

The legal act of unilaterally canceling or terminating a contract by one of the parties involved, effectively restoring the parties to their state before the contract was signed.

Whistle-blower

An individual who exposes illegal, unethical, or wrong practices within an organization to the public or authorities.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Illegal Accounting Procedures

Practices in accounting that violate laws or regulations, often intended to conceal true financial performance or to deceive stakeholders.