Asked by Trap muzik Blossom on Jul 11, 2024

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In which of the following does a shareholder sue alleging that he or she has suffered damages caused by the corporation?

A) Subrogation
B) Shareholder's distributive suit
C) Shareholder's direct suit
D) Shareholder's derivative suit
E) Declaration against interest

Shareholder's Direct Suit

A legal action initiated by a shareholder on behalf of themselves against a corporation, typically for mismanagement or violation of rights.

Shareholder

An individual or entity that owns shares in a corporation, giving them ownership interests and possibly voting rights.

Damages

Financial compensation that a person or organization is ordered to pay to another as restitution for harm or injury suffered.

  • Acquire knowledge on the concept of corporate ownership and the rights and duties associated with shareholders.
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Verified Answer

MN
Michelle NgadjouJul 16, 2024
Final Answer :
C
Explanation :
In addition to their right to bring suit on behalf of the corporation,shareholders can also bring a direct suit against the corporation.In a shareholder's direct suit,the shareholder alleges that he or she has suffered damages caused by the corporation.