stockholder's derivative action
Defined in 1 dictionary — Case Law
Definitions from Case Law
From 337 U.S. 541 - Cohen v. Beneficial Industrial Loan Corp. · 1949Most cited · 22,577 citing opinions
a stockholder who brings suit on a cause of action derived from the corporation assumes a position, not technically as a trustee perhaps, but one of a fiduciary character. He sues, not for himself alone, but as representative of a class comprising all who are similarly situated. The interests of all in the redress of the wrongs are taken into his hands, dependent upon his diligence, wisdom and integrity.