when an owner of a company or
corporation has been wronged or there’s
been wrong to the company
that owner whether it be a shareholder
or a member can bring a claim can bring
a derivative action on behalf of the
company or corporation they essentially
step into the shoes of the corporation
of the company and so their power to
bring that claim is derived
so derivative from their ownership in
the company it’s a way in which
oftentimes minority members or minority
shareholders can have a checks and
balance on wrongdoing that those in
control of the corporation or company
have done to the company and it’s a way
in which
oftentimes a minority member minority
shareholder can ensure that there’s
redress for that wrong you’re stepping
into the shoes of the corporation the
company and it’s called a derivative
action because you’re driving your power
to do so from your ownership