Stockholders' Derivative Action Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Stockholders' Derivative Action, written in plain English, along with examples of how it is used.

What is Stockholders' Derivative Action?

(n) The application of his rights, like suing the company for mismanagement etc derived because of the share held by him as a share holder of the company to safeguard his interest as a shareholder.