Shareholder Lawsuit
/ˈʃɛrˌhoʊldər ˈlɔˌsut/
Definitions
- (n.) A legal action initiated by a shareholder on behalf of a corporation against its directors or officers for breach of fiduciary duty or misconduct.
The shareholder lawsuit alleged that the company’s executives misappropriated funds.
Forms
- shareholder lawsuit
- shareholder lawsuits
Related terms
See also
Commentary
Shareholder lawsuits often arise as derivative suits, where shareholders sue on behalf of the corporation to remedy wrongs against it.
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.