A shareholder may bring a derivative suit on behalf of the corporation and any recovery usually goes to the corporation's treasury,or a shareholder may bring a direct suit to enforce a claim he has against the corporation based on his ownership of shares and any recovery goes to the shareholder plaintiff.

Question

Quizplus · Accepted Answer

This statement is true. A shareholder may bring a derivative suit on behalf of the corporation, and any recovery usually goes back to the corporation's treasury. Alternatively, a shareholder may bring a direct suit to enforce a claim against the corporation based on their ownership of shares, and any recovery goes to the shareholder plaintiff.

A Shareholder May Bring a Derivative Suit on Behalf of the Corporation