derivative actions

Derivative actions are legal steps taken by shareholders of a company to address wrongs caused to the corporation, when the company's management fails to act. In essence, shareholders step into the company's shoes to pursue legal remedies against directors or officers who breach their duties or commit misconduct. The goal is to protect the company's interests and ensure responsible governance, rather than seeking personal gains. This mechanism encourages accountability and helps maintain the company's integrity when internal decision-makers are unable or unwilling to act in the company's best interest.