Derivative suit

...In a joint stock company or limited liability company, when the company has a right to claim damages against directors, etc. but fails to exercise that right, shareholders (or members in the case of a limited liability company) can file a lawsuit on behalf of the company. This system was introduced in the 1950 Commercial Code amendment modeled on the derivative suit in American law, and is also called a subrogation suit or derivative suit. In a joint stock company, it is the directors who exercise the company's rights to claim damages, but since there are cases in which they fail to exercise those rights, this system was approved to protect the interests of shareholders.

*Some of the terminology explanations that mention "derivative suit" are listed below.

Source | Heibonsha World Encyclopedia 2nd Edition | Information

…株式会社または有限会社において，会社が取締役などに対し損害賠償などの請求権を持ちながらそれを行使しないときに，株主(有限会社の場合は社員)が会社に代わって提起する訴訟。アメリカ法のderivative suitにならって1950年の商法改正でとり入れられた制度であり，代位訴訟，派生訴訟ともいわれる。株式会社において会社の請求権を行使するのは取締役であるが，その行使を怠ることがありうるので，株主の利益を保護するためにこの制度が認められる。…

※「derivative suit」について言及している用語解説の一部を掲載しています。

出典｜株式会社平凡社世界大百科事典 第２版について | 情報