Direct Shareholder Suit
/ˈdɪrɛkt ˈʃɛrˌhoʊldər suːt/
Definitions
- (n.) A lawsuit initiated by a shareholder to address harm done directly to the shareholder's own rights, distinct from harm suffered by the corporation.
The plaintiff filed a direct shareholder suit alleging mismanagement that personally diminished his dividends.
Forms
- direct shareholder suit
- direct shareholder suits
Related terms
See also
Commentary
Direct shareholder suits focus on individual shareholder injuries rather than corporate injury, necessitating clear proof that the harm is personal and separate from that to the corporation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.