Direct Shareholder Actions and Derivative Actions - Explained

The video tutorial explains the rights of shareholders in a corporation, focusing on how they can enforce these rights when they disagree with actions taken by directors or officers. It introduces two main types of legal actions: direct action, where shareholders sue for personal harm, and derivative action, where they sue on behalf of the corporation to recover losses. The tutorial highlights the differences between these actions and their implications for shareholders and the corporation.

What happens to the damages awarded in a derivative action?

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How do derivative actions benefit all shareholders collectively?

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