A shareholder derivative suit is a lawsuit brought by a [wex:shareholder] on behalf of a [wex:corporation]. Generally, a shareholder can only sue on behalf of a corporation when the corporation has a valid [wex:cause of action], but has refused to use it. This often happens when the defendant in the suit is someone close to the company, like a [wex:director] or a [wex:corporate officer]. If the suit is successful, the proceeds go to the corporation, not to the shareholder who brought the suit.
- [[wex:Fiduciary Duty]]