Practice question
Officers allegedly diverted corporate funds. A qualifying shareholder files in the corporation's name, meets the other derivative requirements, and seeks restoration of those funds to the corporation. The defendants argue that the plaintiff cannot sue because the loss was corporate rather than uniquely personal. Which response is sound?
- Corporate injury is precisely what a proper derivative suit can address; the corporation's cause is pursued through the qualified shareholder.
- Every corporate injury is immune from suit.
- The plaintiff must demand the funds solely for personal use.
- Derivative litigation is limited to personal dividends.
- The corporation must be omitted from the action.
Legal references
- Tan v. Suntay, GR260170, May19 2025, main resolution, Rule8 Section1 IRPIC: https://lawphil.net/judjuris/juri2025/may2025/gr_260170_2025.html
- Metropolitan Bank v. Salazar Realty, GR218738, March9 2022, main decision: https://lawphil.net/judjuris/juri2022/mar2022/gr_218738_2022.html
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