Under CBCA, shareholders may bring a derivative action on behalf of the company when
Under CBCA, shareholders may bring a derivative action on behalf of the company when:
A. The board fails to pursue a valid claim against wrongdoers
B. The shareholder suffers personal financial loss
C. The company is insolvent
D. Majority shareholders approve the action
Answer: A
Explanation: Derivative actions are for corporate harm; shareholders can sue if the board refuses to act, not for personal losses.
