Final answer:
Drake would likely bring a direct suit against Sweet's corporate management if his preemptive rights as a shareholder were violated, as this is 3. a personal claim against the corporation.
Step-by-step explanation:
If Drake, a shareholder of Sweet Corp., believes he has been deprived of the right to purchase some of the corporation's newly issued stock, direct suit against Sweet's corporate management is a potential legal recourse. Shareholders typically have preemptive rights, which allow them to buy new shares before the company offers them to the general public, meant to prevent dilution of their ownership stake. If these rights are violated, the shareholder would bring a direct suit. A derivative suit, on the other hand, is brought by shareholders on behalf of the corporation against management for breaches of fiduciary duty, and any damages are awarded to the corporation, not the individual shareholder. Drake would bring a direct suit if he is personally affected, such as when his preemptive rights are violated.
If Drake, a shareholder of Sweet Corp., feels that he has been deprived of the right to purchase some of the corporation's newly issued stock, he may bring a derivative suit against Sweet's corporate management. A derivative suit is brought by a shareholder on behalf of the corporation, alleging that the management has breached their fiduciary duty. Drake can also bring a direct suit against Sweet's corporate management if he believes that they have violated his individual rights as a shareholder. In this case, he would be seeking relief for himself personally.