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derivative suit |
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1) The Court of Appeals of Kansas, in a case that involved record, but not beneficial, owners of stock held that a shareholder need not be a beneficial owner of stock in the corporation to have standing, finding that a "mere nominal owner of stock" has standing to bring a derivative suit because the nominal owner has an ongoing proprietary interest in the corporation. A derivative action, more popularly known as a Stockholder's Derivative Suit, is derived from the primary right of the A shareholder''s derivative suit is another sort of business litigation commonly brought about by one or a group of shareholders as a legal action to prevent or resolve a wrongful act against the corporation. |
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