derivative action

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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.
References in periodicals archive ?
com's eight year history, we've never been joined in a shareholder's derivative suit," says Jonathan Johnson, president.
According to West's Encyclopedia of American Law, derivative suits enforce legal rights when the corporation itself is unwilling to sue its own officers or directors.
Similarly, a shareholder's derivative suit against the corporate officers and directors of CNET Networks was dismissed by a California judge who ruled that the aggrieved party had failed to show "demand futility.
Yet insurers are also weighing the spate of backdating-related claims, especially in light of the fact that many are resulting out of derivative suits.
Zhou, will investigate the claims in the shareholder derivative suit recently brought against certain of the Company's former and current officers and directors and matters related thereto, and will make a recommendation as to whether it is in the best interests of the Company to pursue, dismiss or consensually resolve such claims or other claims related thereto.
As part of its effort for change at Ronson, Steel Partners is continuing to aggressively pursue a shareholder derivative suit against Ronson's Board of Directors claiming various breaches of fiduciary duty.
The Superior Court ruled, at the request of the Ronson directors, that trial and discovery of all claims and defenses in the derivative suit, other than the Special Litigation Committee defense, shall be held in abeyance pending trial of the Special Litigation Committee defense.
Halliburton and plaintiffs' representatives have signed a memorandum of understanding to settle approximately twenty shareholder class action securities cases that have been consolidated before a federal court in Dallas, Texas, and a shareholder derivative suit pending in the same federal court.
filed in Los Angeles Superior Court; and a rescission suit filed in the United States District Court, Central District of California, Western Division by the insurance company providing coverage applicable to the class action and derivative suit.
Two shareholders of Enron have filed a derivative suit in Federal Court in Texas alleging that certain directors of Enron breached their fiduciary duties to the Company.
An Enron (NYSE: ENE) shareholder has filed a derivative suit in Texas state court which charges that Enron's board of directors breached their fiduciary duties to the Company by allowing its CFO, Andrew Fastow to create and run certain limited partnerships.
B) today announced that a federal judge in Houston, Texas has dismissed a shareholders' derivative suit filed against some of the Company's officers and directors.