What must a member prove to bring a derivative action on behalf of a company?

To bring a derivative action on behalf of a company, a member must demonstrate that they acted in good faith for the company's success. This requirement is rooted in the principles of shareholder rights and corporate governance. A derivative action typically involves a shareholder suing on behalf of the company when the management of the company is failing to take action on a legitimate claim or when they are acting against the interests of the company.

Acting in good faith means that the member is looking out for the best interests of the company and its shareholders, rather than pursuing a personal interest or agenda. The courts generally want to ensure that derivative actions are initiated with genuine intent to protect the company and its stakeholders, not for self-serving reasons.

The option involving self-interest contradicts the fundamental basis of derivative actions, which are intended to benefit the company as a whole, not the individual initiating the action. It's also essential that the action is not solely based on the support of the majority or the company’s profitability; rather, the focus is on the intention and motivation behind the member's action, which must align with the company's welfare and success.