DERIVATIVE ACTION
derivative action. 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. [Blacks Law 8th]