shareholder derivatives

Shareholder derivatives are legal actions initiated by shareholders on behalf of a corporation to address misconduct or harm caused by its management or directors. Instead of suing in their personal capacity, shareholders step into the company’s shoes to seek remedies—such as recovering damages or demanding changes—that benefit the corporation. This process helps protect the company's interests and ensures accountability when those in control act improperly. Essentially, it’s a way for shareholders to hold executives accountable and address issues that might harm the company, aligning their interests with the company's well-being.