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Simple English definitions for legal terms

derivative suit

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A quick definition of derivative suit:

A derivative suit is a type of lawsuit where a shareholder sues a third party on behalf of a corporation because the corporation failed to take action against the third party. It is also called a shareholder derivative suit or stockholder derivative suit. Another type of derivative suit is when someone sues on behalf of another person who was injured by a third party, such as a husband suing for loss of companionship because his wife was injured by someone else.

A more thorough explanation:

A derivative suit is a legal action brought by a shareholder on behalf of a corporation against a third party, usually a corporate officer, for failing to take action against them. This type of lawsuit is also known as a shareholder derivative suit, stockholder derivative suit, or representative action.

For example, if a corporation's CEO is accused of embezzlement and the board of directors fails to take action, a shareholder can file a derivative suit on behalf of the corporation to recover damages from the CEO.

It's important to note that a derivative suit is different from a direct action, which is a lawsuit brought by an individual to recover damages for their own injuries. In a derivative suit, the shareholder is seeking to enforce a right belonging to the corporation.

derivative settlement | derivative title

General

General chat about the legal profession.

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CynicalOops

1:12

@cheriebomb: high on my list

CynicalOops

1:13

@Dkk: top 5 most attractive ethnic groups

cheriebomb

1:13

latina milfs gotta be in my top 5 personally

Dkk

1:13

Natural hair colors lol

cheriebomb

1:14

irish Catholics, Jewish men

Dkk

1:14

Yeah I have said this before, maybe the only preference would be red headed women cus that's who I lost my virginity to.

cheriebomb

1:15

Woah redhead bias in the chat is a major development

cheriebomb

1:15

Was she a natural ginger or a fake ginger? You can’t always tell

Dkk

1:15

@CynicalOops: I go white people cus I am white. Hispanics cus I am hispanic. Black women, Asian women. Sub races Idk.

Dkk

1:15

@cheriebomb: Fake. Her natural hair color was blond.

cheriebomb

1:16

A fake ginger bitch will ruin your life <3

CynicalOops

1:16

I met a ginger and i thought she was a real one and then she was fake and it shattered my world

CynicalOops

1:16

Then she moved to london

Dkk

1:16

Uhhh she kinda just ruined hers by trying to cheat on me and then some guy raped her lol.

CynicalOops

1:16

Shattered x2

Dkk

1:17

@cheriebomb: maybe though. Maybe that is true but you shouldn't be saying that to people if you want them to date you.

cheriebomb

1:17

Why are women always moving to London? There’s nothing good there

cheriebomb

1:17

I’m just being transparent

cheriebomb

1:17

The heart indicates that it’s a good thing

Dkk

1:18

Okay sounds good. Yeah my cousin moved to London. Nothing there for him after 6 years and he moved back to New York.

Dkk

1:19

Great to visit, not great to stay imo.

cheriebomb

1:19

London sucks and cyncial’s fake ginger is probably regretting it right now

cheriebomb

1:19

So dark and rainy and I hate the way they talk

cheriebomb

1:19

And their sense of humor

CynicalOops

1:19

Shes was from london so im not sure

CynicalOops

1:21

Dkk i do appreciate your transparency i really understand you better

Dkk

1:21

Europe seems off to me in general. I met a lot of weird europeans in Crypto.

cheriebomb

1:21

Oh maybe not then. But that’s your fault for dating a girl from London in the first place

Dkk

1:21

@CynicalOops: lol maybe maybe

cheriebomb

1:23

I always understood Dk like we developed in the womb together so this is not new to me

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