Derivative Action

Derivative Action
A legal action initiated by a shareholder on behalf of a corporation against a third party, often an executive or director of the corporation, due to the corporation's failure to enforce its rights. This remedy allows shareholders to address wrongs done to the corporation when the corporation itself fails to take action.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.