Question
Shareholders of Tyson Foods initiated a derivative suit alleging that the board of directors failed to protect its workforce adequately from the coronavirus pandemic. The
Shareholders of Tyson Foods initiated a derivative suit alleging that the board of directors failed to protect its workforce adequately from the coronavirus pandemic. The complaint alleges that the named officers and directors "took minimal precautions to prevent the outbreak of COVID-19 at its facilities," risking the health of the company and its employees. As a result of the insufficient precautions, the shareholders allege that the company suffered waves of massive outbreaks of the coronavirus, resulting in temporary closures which negatively impacted both employee health and production. Tyson, the complaint alleges, "had triple the amount of COVID-19 cases and twice as many related deaths compared to other companies" in its industry. Shareholder derivative suits:
A) allege the corporation itself has been harmed by the board's breach of fiduciary duty, so damages are awarded to the corporation.
B) allege the shareholders are harmed by the board's breach of fiduciary duty, so damages are awarded to the shareholders.
C) allegethe corporation itself has been harmed by the board's breach of fiduciary duty, so damages are awarded to the shareholders.
D) allegethe shareholders are harmed by the board's breach of fiduciary duty, so damages are awarded to the corporation.
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