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]