When those in control of a corporation——the corporate directors fail to sue in the corporate name to redress a wrong suffered by the corporation, are permitted to do so derivatively in what is known as a shareholder's derivative suit.Some wrong must have been done to the corporation ,and any damages recovered by the suit usually go into the corporation treasury.The right of to bring a derivative action is especially important when the wrong suffered by the corporation results from the actions of corporate directors or officers, because in such cases the directors and officers would probably want to prevent any action against themselves.
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