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.
McGraw-Hill Dictionary of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Separately, the complainants--led by Chua--recently filed a derivative suit accusing SyCip, the Dees, Malonzo, and three other officers of deliberately mismanaging and siphoning company finances to their personal gain.
The chapter on litigation comes earlier in the book so that students can become familiar with derivative suit procedures in order to understand the cases on fiduciary duties.
Corporate law leaves them with one other recourse: a derivative suit challenging a specific expenditure or program of activity that is allegedly harmful to the corporation.
In case of a derivative suit, the plaintiff shareholder sues on behalf of the corporation.
DERIVATIVE DEMANDS: A procedural requirement in many states which requires a shareholder who wants to bring a derivative suit to first make a demand on the board of directors that it rectify the perceived wrong.
Fischel & Michael Bradley, The Role of Liability Rules and the Derivative Suit in Corporate Law: A Theoretical and Empirical Analysis, 71 CORNELL L.
McCollum (33) that the corporation had no obligation to indemnify directors who were vindicated in a derivative suit because the directors' triumph yielded no benefit for the corporation.
Baker once represented a Park City resident in a shareholder derivative suit against a major company.
Second, the dataset includes a number of cases that may not reflect the typical derivative suit. Specifically, 40 of the 182 cases (22 percent) involved allegations that the defendants backdated or otherwise repriced stock options.
15 after three members of Oracle's board approved a " derivative suit" as part of the Special Litigation Committee.
Misconduct-Related Derivative Suit, D&O DIARY (Oct.

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