Asked by Nellies Asante on Jul 09, 2024
Verified
A special litigation committee whose purpose is to decide whether to sue should consist of:
A) directors who were directors at the time the wrong occurred.
B) directors who are not defendants in the derivative suit.
C) directors who are interested in the challenged action.
D) directors who are not independent of the defendant directors.
Special Litigation Committee
A committee often formed within a corporation's board of directors to decide on legal strategies or manage specific litigation matters, especially in derivative lawsuits.
Derivative Suit
A lawsuit brought by a shareholder on behalf of a corporation against a third party, often its officers or directors, for harm done to the corporation.
Interested Directors
Board members who have a personal, financial, or other direct interest in a matter being considered by the board.
- Acquire knowledge on the procedural and substantive aspects of derivative suits and class actions.
Verified Answer
Learning Objectives
- Acquire knowledge on the procedural and substantive aspects of derivative suits and class actions.
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