Suits by stockholders or members of a corporation is based on wrongful acts of the directors are classified as (1) Individual Suits , (2) Class Suits and (3) Derivative Suits. Individual suit is a suit brought by the shareholder in his own name against the corporation when a wrong is directly inflicted against him. A Representative/Class suit meanwhile is brought by the stockholder in behalf of himself and all other stockholders similarly situated when a wrong is committed against a group of stockholders, while Derivative suit is a suit by a shareholder to enforce a corporate cause of action. The corporation is a necessary party to the suit, and the relief which is granted is a judgment against a third person in favor of the corporation. In cases of a poor management made by directors, a stockholder may find that he has no redress becase it is the directors who are vested with the reight to decide as to the action of corporations to sue. Because of the
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- Fall '16
- class suit