Derivative Action definition: Copy, customize, and use instantly
Introduction
The term "Derivative Action" refers to a lawsuit initiated by a shareholder or member of a company on behalf of the company, typically to address harm caused by management or directors that affects the company's interests. It is essential in legal and corporate governance contexts to ensure accountability and protect the entity's assets or reputation.
Below are various examples of how "Derivative Action" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Derivative Action" as a shareholder lawsuit
This definition ties "Derivative Action" to shareholder rights.
"Derivative Action" means a lawsuit brought by a shareholder or member on behalf of a corporation to address harm or wrongdoing committed against the corporation by its directors, officers, or third parties.
Definition of "Derivative Action" as a corporate governance tool
This definition connects "Derivative Action" to corporate governance.
"Derivative Action" refers to a legal mechanism that allows shareholders or members to act on behalf of a corporation to rectify misconduct, mismanagement, or breaches of fiduciary duty.
Definition of "Derivative Action" as a remedy for fiduciary breaches
This definition emphasizes "Derivative Action" for fiduciary violations.
"Derivative Action" means a lawsuit initiated by a shareholder to address breaches of fiduciary duty by the company’s directors or officers, seeking remedies for the corporation.
Definition of "Derivative Action" as a representative legal action
This definition highlights "Derivative Action" as a representative claim.
"Derivative Action" refers to a legal action brought by a shareholder or member in a representative capacity to enforce the corporation’s rights against wrongdoers.
Definition of "Derivative Action" as a corporate protection measure
This definition ties "Derivative Action" to protecting corporate interests.
"Derivative Action" means a lawsuit filed on behalf of a corporation to recover damages or prevent harm resulting from misconduct, fraud, or negligence by those in control.
Definition of "Derivative Action" as a minority shareholder tool
This definition highlights the role of "Derivative Action" for minority shareholders.
"Derivative Action" refers to a legal process available to minority shareholders to ensure corporate accountability and address harm caused to the corporation by its management or controlling parties.
Definition of "Derivative Action" as a claim for corporate recovery
This definition emphasizes recovery for the corporation.
"Derivative Action" means a lawsuit initiated by shareholders to recover losses or damages incurred by the corporation due to unlawful or negligent actions by its directors or officers.
Definition of "Derivative Action" as a mechanism for enforcing directors' duties
This definition focuses on enforcing directors' fiduciary obligations.
"Derivative Action" refers to a legal claim brought by a shareholder on behalf of a corporation to hold directors accountable for breaches of fiduciary or statutory duties.
Definition of "Derivative Action" as an internal accountability process
This definition ties "Derivative Action" to internal corporate oversight.
"Derivative Action" means a legal process used to ensure accountability within a corporation by addressing wrongdoing or negligence that affects the company’s assets or reputation.
Definition of "Derivative Action" as a safeguard for corporate assets
This definition highlights the role of "Derivative Action" in asset protection.
"Derivative Action" refers to a lawsuit brought by shareholders to protect corporate assets and interests from harm caused by mismanagement, fraud, or breach of duty.
Definition of "Derivative Action" as a shareholder enforcement right
This definition highlights "Derivative Action" as an enforcement tool for shareholders.
"Derivative Action" means the legal right of a shareholder to bring a claim on behalf of the corporation to enforce its rights against directors, officers, or third parties.
Definition of "Derivative Action" as a remedy for corporate harm
This definition ties "Derivative Action" to addressing harm to the corporation.
"Derivative Action" refers to a lawsuit initiated by a shareholder or member to address harm done to the corporation’s financial or operational interests by those in control.
Definition of "Derivative Action" as a protection against insider misconduct
This definition emphasizes "Derivative Action" as a response to insider wrongdoing.
"Derivative Action" means a legal claim brought by shareholders to address misconduct, fraud, or self-dealing by insiders, including directors and officers.
Definition of "Derivative Action" as a recourse for minority stakeholders
This definition highlights the role of "Derivative Action" for minority protection.
"Derivative Action" refers to a legal process that allows minority shareholders to challenge corporate misconduct or mismanagement that adversely affects the company.
Definition of "Derivative Action" as a tool for recovering corporate losses
This definition ties "Derivative Action" to loss recovery.
"Derivative Action" means a legal action brought to recover losses suffered by the corporation due to breaches of duty, fraud, or negligence by its directors or officers.
Definition of "Derivative Action" as a check on corporate governance
This definition connects "Derivative Action" to governance oversight.
"Derivative Action" refers to a mechanism used by shareholders to ensure proper governance and accountability in cases of mismanagement or unethical practices within the corporation.
Definition of "Derivative Action" as a mechanism for fiduciary accountability
This definition emphasizes holding fiduciaries accountable.
"Derivative Action" means a legal process initiated to hold directors or officers accountable for breaching fiduciary duties owed to the corporation.
Definition of "Derivative Action" as a statutory remedy for corporations
This definition ties "Derivative Action" to statutory provisions.
"Derivative Action" refers to a statutory right granted to shareholders to sue on behalf of the corporation to remedy wrongs committed against it.
Definition of "Derivative Action" as a remedy for breaches of loyalty
This definition highlights "Derivative Action" as addressing breaches of loyalty.
"Derivative Action" means a lawsuit brought by a shareholder to address breaches of the duty of loyalty by directors or officers, ensuring protection of the corporation’s interests.
Definition of "Derivative Action" as a claim for equitable relief
This definition focuses on equitable remedies in "Derivative Action."
"Derivative Action" refers to a legal process initiated by shareholders seeking equitable relief, such as injunctions, to prevent further harm to the corporation.
Definition of "Derivative Action" as a process for corporate restitution
This definition ties "Derivative Action" to financial restitution.
"Derivative Action" means a legal claim brought by shareholders to restore financial losses or damages caused by directors’ or officers’ wrongful actions.
Definition of "Derivative Action" as a method for addressing fraud
This definition emphasizes "Derivative Action" as a remedy for fraud.
"Derivative Action" refers to a lawsuit initiated by shareholders to address fraudulent actions by directors, officers, or third parties that harm the corporation.
Definition of "Derivative Action" as a shareholder oversight mechanism
This definition highlights "Derivative Action" as an oversight tool.
"Derivative Action" means a legal mechanism that allows shareholders to monitor and rectify corporate misconduct or negligence by those in control.
Definition of "Derivative Action" as a safeguard for shareholder equity
This definition ties "Derivative Action" to protecting equity.
"Derivative Action" refers to a legal process used to safeguard shareholder equity by addressing mismanagement or breaches of fiduciary duty affecting the corporation’s value.
Definition of "Derivative Action" as a tool for addressing conflicts of interest
This definition emphasizes conflicts of interest in "Derivative Action."
"Derivative Action" means a lawsuit brought by shareholders to address conflicts of interest involving directors or officers that harm the corporation.
Definition of "Derivative Action" as a remedy for self-dealing
This definition highlights "Derivative Action" in cases of self-dealing.
"Derivative Action" refers to a lawsuit initiated by shareholders to address self-dealing or personal enrichment by directors or officers at the corporation’s expense.
Definition of "Derivative Action" as a collective shareholder claim
This definition ties "Derivative Action" to collective action.
"Derivative Action" means a legal process brought by one or more shareholders collectively to enforce the corporation’s rights against internal or external wrongdoers.
Definition of "Derivative Action" as a claim for accountability in partnerships
This definition expands "Derivative Action" to partnerships.
"Derivative Action" refers to a legal claim initiated by a partner or member of a partnership to address harm or breaches of duty affecting the partnership’s interests.
Definition of "Derivative Action" as a claim for internal transparency
This definition highlights "Derivative Action" as a transparency tool.
"Derivative Action" means a legal process used to demand internal transparency and accountability in corporate decision-making and management.
Definition of "Derivative Action" as a preventive measure against mismanagement
This definition ties "Derivative Action" to prevention of harm.
"Derivative Action" refers to a lawsuit initiated to prevent or address mismanagement or gross negligence within a corporation that threatens its interests.
Definition of "Derivative Action" as a tool for remedying unethical practices
This definition emphasizes addressing unethical actions.
"Derivative Action" means a legal mechanism to remedy unethical practices by directors or officers that harm the corporation or its stakeholders.
Definition of "Derivative Action" as a claim for breach of corporate charter
This definition ties "Derivative Action" to corporate charter violations.
"Derivative Action" refers to a lawsuit brought by shareholders to address violations of the corporation’s charter or governing documents.
Definition of "Derivative Action" as a shareholder intervention tool
This definition highlights "Derivative Action" for shareholder involvement.
"Derivative Action" means a legal claim allowing shareholders to intervene in corporate governance to protect the corporation from harm caused by its directors or officers.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.