shareholder's derivative action

Definition of "shareholder's derivative action"
  1. A legal proceeding initiated by a company's stockholder to safeguard the interests of all shareholders due to alleged mishandling by the corporation
How to use "shareholder's derivative action" in a sentence
  1. In response to the board's questionable decisions, a shareholder's derivative action was filed.
  2. The major stockholder initiated a shareholder's derivative action after noticing financial anomalies.
  3. A shareholder's derivative action was launched to protect investors from potential mismanagement.
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