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soldier1979 [14.2K]
3 years ago
8

When a company is harmed, the board of directors can sue on behalf of the corporation. If they do not, the shareholders may brin

g a(n) ____ action. Before filing suit, the shareholders must make a(n) ___ demand of the board to do so. If the board does not take action within ____ days, the shareholders can file suit. A court may dismiss the case if the majority of directors or a(n)___ panel determines in good faith that the lawsuit is not in the best interest of the corporation.
Social Studies
1 answer:
Basile [38]3 years ago
8 0

Answer:

derivative, written, 90, independent

Explanation:

When a company is harmed, the board of directors can sue on behalf of the corporation. If they do not, the shareholders may bring a DERIVATIVE action. Before filing suit, the shareholders must make a WRITTEN demand of the board to do so. If the board does not take action within 90 days, the shareholders can file suit. A court may dismiss the case if the majority of directors or an INDEPENDENT panel determines in good faith that the lawsuit is not in the best interest of the corporation.

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