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 ?
the Federal Derivative Action), will be dismissed by stipulation and order when the judgment in the State Court Derivative Action becomes final.
First, two of the largest shareholder derivative action settlements in history--$275 million and $154 million--recently occurred.
Based on the author's PhD thesis, this volume analyzes the derivative action system and its role in China to protect shareholder interests, as well as its improvement, looking at how these actions allow individual shareholders to sue controlling shareholders and managers on behalf of the company.
transplanted derivative action lay moribund for almost four post-war decades, while at the same time the derivative action was a staple of shareholder litigation in the United States.
Parent company of BankAtlantic, BankAtlantic Bancorp Inc (NYSE:BBX) disclosed on Thursday that it received final approval from Judge Jeffrey Streitfeld to the dismiss a shareholder derivative action filed against some of its directors and executive officers.
When a plaintiff files a derivative action on behalf of a corporation, the board of directors of that corporation has the right to appoint an individual, the independent investigator, or a group of individuals, the Special Litigation Committee (SLC), to review the derivative action and to recommend if that litigation should be dismissed.
A likely settlement scenario for a stock option backdating shareholder derivative action includes some or all of the following components: (1) a monetary payment; (2) corporate therapeutics; and (3) the payment of a plaintiff's counsel fee award.
These could come in the form of a shareholders derivative action for a breach of fiduciary duties or a shareholders class action securities fraud suit.
Derivative action, or rate, is meant to compensate for large changes.
Unlike the more familiar shareholder class-action lawsuits, in which investors sue to recover their own losses, a derivative action is filed against a company's officers by shareholders acting on the company's behalf.
Andersen argued that the only remedy that applies was a derivative action by the shareholders on behalf of the corporation, since Andersen owed no direct duty to individual shareholders.