When can shareholders sue a corporation directly?
A)only if their own rights have been violated
B)only if the corporation has been wronged
C)only if they hold at least 10 percent of company stock
D)at any time they wish

Question

Quizplus · Accepted Answer

Shareholders can only sue a corporation directly if their own rights have been violated. This means that they must have suffered harm or loss as a result of the corporation's actions. They cannot simply sue the corporation because they disagree with its decisions or policies. The other options (B, C, and D) are not accurate as they do not cover the specific circumstances under which shareholders can sue a corporation.

When Can Shareholders Sue a Corporation Directly