Stockholders can enforce their rights through "direct" or "derivative" litigation, depending on the nature of the right that is impinged. This module begins by discussing the academic debate on whether stockholders' ability to sue is good or bad for corporations, society, and stockholders. It then explains the difference between direct and derivative rights, and it concludes with a brief overview of the procedural differences between direct and derivative suits. This sets students up for the next module or derivative lawsuits and the demand requirement.
