derivative action

(redirected from stockholder derivative suit)
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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 ?
During fiscal 2001, $431,445 of expenses related to the termination of the stockholder derivative suit and a $125,000 one time fee for termination of a previous line of credit were included in operating expenses.
We were able to terminate a stockholder derivative suit, which had significantly impacted the ability of management to grow and develop our business.
While a "loser pays" system remains uncertain in Delaware, in 2014, Oklahoma became the first state to adopt a law mandating fee shifting in stockholder derivative suits.