A.I. Powered: Philippine Bar Reviewer

Question

F. Stockholders and Members: Derivative Suit or Intra-Corporate Suit

Martin is a minority shareholder in XYZ Corporation. He recently discovered that the majority shareholders engaged in fraudulent activities that caused significant financial losses to the company. Martin believes that the actions of the majority shareholders are detrimental to XYZ Corporation and its shareholders as a whole.

Advise Martin on the following:

1. What is a derivative suit or intra-corporate suit?
2. What are the requirements for Martin to file a derivative suit or intra-corporate suit?
3. What defenses or grounds for dismissal can the majority shareholders raise, if any?
4. What remedies are available to Martin if the derivative suit or intra-corportate suit is successful?

---

Answer