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derivative action

   Also found in: Legal, Financial, Wikipedia 0.01 sec.
derivative action [də′riv·əd·iv ‚ak·shən]
(control systems)
Control action in which the speed at which a correction is made depends on how fast the system error is increasing. Also known as derivative compensation; rate action.
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Alternatively, says the company, Computershare is seeking permission from the court to start a derivative action in the name of and on behalf of Crystallex, which would require Crystallex to bring an action against its entire board of directors.
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Ditech Networks (NASDAQ:DITC), a global leader in mobile voice processing solutions, today announced that it has entered into a Stipulation and Agreement of Settlement in connection with the consolidated shareholder derivative action pending in the United States District Court, Northern District of California captioned In re Ditech Networks, Inc.
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