In a derivation proceeding settlement, what status does the Board hold?

In a derivation proceeding, the Board is treated as a nominal party regarding jurisdiction. This means that, while the Board is involved in the overall process of the derivative claim, it does not have a direct role in the settlement discussions between the parties involved. The Board oversees the process but does not actively participate in the negotiations or the terms of the settlement.

This status is important because it allows the parties to come to their own agreements without needing the direct involvement or approval of the Board for every detail. However, while the Board is nominally involved, it retains the authority to hear disputes and enforce compliance with the underlying statutes and regulations as necessary. The other options suggest that the Board should either have a more active role than it does or imply an incorrect understanding of its powers regarding jurisdiction and settlements.