derivative action

derivative action
An action brought by one or more stockholders of a corporation to enforce a corporate right or to prevent or remedy a wrong to the corporation in cases where the corporation, because it is controlled by the wrongdoers or for other reasons, fails and refuses to take appropriate action for its own protection. Price v Gurney, 324 US 100, 89 L Ed 776, 65 S Ct 513.

Ballentine's law dictionary. . 1998.

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  • derivative action — n. derivative suit, legal suit filed by a shareholder in the name of a corporation …   English contemporary dictionary

  • stockholders' derivative action — n.    See also: derivative action, shareholders derivative action Law dictionary. EdwART. 2013 …   Law dictionary

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