A
derivative action seeks compensation for an injury suffered by the corporation
or by stockholders generally, as a result of the actions of the Board of
Directors. In a derivative action, the cause of action belongs to the corporation and not to the stockholders individually. The ability of individual shareholders to bring derivative actions
for the corporation is codified in Florida’s Business Corporation Statute. Fla. Stat. §607.07401. Although Condominiums are not governed by
this statute and instead are not-for-profit corporations, derivative actions
could be applicable to Condominiums depending on the type of relief being
sought by a unit owner. It is also important to know that the relief
being sought (whether money damages and/or other types of relief) goes to the corporation rather than to the actual plaintiff.
