1. A suit by a beneficiary of a fiduciary to enforce a right belonging to the fiduciary; esp., a suit asserted by a shareholder on the corporation’s behalf against a third party (usu. a corporate officer) because of the corporation’s failure to take some action against the third party. See Fed. R. Civ. P. 23.
1. — Also termed derivative suit; shareholder derivative suit; stockholder derivative suit; representative action. Cf. DIRECT ACTION(3). [Cases: Corporations 207.
5. C.J.S. Corporations § 413.]
2. A lawsuit arising from an injury to another person, such as a husband’s action for loss of consortium arising from an injury to his wife caused by a third person.
