Derivative Action

Business, Legal & Accounting Glossary

Definition: Derivative Action




What is the dictionary definition of Derivative Action?

Dictionary Definition


n. a lawsuit brought by a corporation shareholder against the directors, management and/or other shareholders of the corporation, for a failure by management. In effect, the suing shareholder claims to be acting on behalf of the corporation, because the directors and management are failing to exercise their authority for the benefit of the company and all of its shareholders. This type of suit often arises when there is fraud, mismanagement, self-dealing and/or dishonesty which are being ignored by officers and the board of directors of a corporation.


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Derivative Action. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 25, 2021 https://payrollheaven.com/define/derivative-action/.
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Derivative Action. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/derivative-action/ (accessed: September 25, 2021).
American Psychological Association (APA):
Derivative Action. PayrollHeaven.com. Retrieved September 25, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/derivative-action/

Definition Sources


Definitions for Derivative Action are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 27th April, 2020 | 0 Views.