When a Derivative Law Suit Is Filed

question 23

Multiple Choice

When a derivative law suit is filed:

• A) majority shareholders may complain that minority shareholders are not cooperating with the board.
• B) majority shareholders are required to prove that they are not acting illegally or oppressing the rights of minority shareholders.
• C) minority shareholders are required to provide evidence that the majority shareholders are acting illegally or oppressing the rights of the minority shareholders.
• D) directors are suing the officers and asking for their termination due to illegal or oppressive acts directed at all shareholders.
• E) majority shareholders act on behalf of the organization.

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