The Revised Act requires that demand be made upon the board of directors to enforce the corporate right at issue as a prerequisite to bringing a derivative suit.

Question

Quizplus · Accepted Answer

The Revised Act typically refers to updated legal frameworks governing corporations, such as the Model Business Corporation Act in the United States. One of its provisions often requires shareholders to demand that the board of directors address an issue internally before they can file a derivative lawsuit on behalf of the corporation. This demand requirement is intended to give the corporation the opportunity to handle the matter itself, potentially correcting any wrongdoing without litigation.

The Revised Act Requires That Demand Be Made Upon the Board