Commercial Law, 2012 Bar — Question 61

MULTIPLE CHOICE

X is a minority stockholder of CCC Corporation. Y is a member of the Board of Directors of CCC Corporation and at the same time he is the President. X believes that Y is mismanaging CCC Corporation hence, as a stockholder and in behalf of the other stockholders, he wanted to sue Y. Which statement is most accurate? A) X can institute a derivative suit in behalf of himself as a stockholder. B) A derivative suit must be instituted in behalf of the corporation. C) Derivative suit is an exclusive remedy that X can institute. D) Derivative suit is not the remedy in this situation.

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