A shareholder derivative action is a suit brought by a shareholder on behalf of the corporation.

Name: A shareholder derivative action is a suit brought by a shareholder on behalf of the corporation.
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This type of lawsuit is known as a shareholder derivative action because the shareholder is essentially bringing the claim on behalf of the corporation, seeking to remedy harm done to the company by its own officers or directors.

A Shareholder Derivative Action Is a Suit Brought by a Shareholder