§ 57D-8-01 – Member derivative actions.
57D-8-01. Member derivative actions. (a) Subject to the provisions of G.S. 57D-8-02 and G.S. 57D-8-03, a member may bring a derivative action if the following conditions are met: (1) Either (i) the member was a member of the LLC at the time of the act or omission for which the proceeding is brought or (ii) […]
§ 57D-8-02 – Stay of proceedings.
57D-8-02. Stay of proceedings. If the LLC commences an inquiry into the allegations set forth in the demand or complaint, the court may stay a derivative proceeding. (2013-157, s. 2.)
§ 57D-8-03 – Dismissal.
57D-8-03. Dismissal. (a) The court shall dismiss a derivative proceeding on motion of the LLC if one of the groups specified in subsection (b) or (f) of this section determines after conducting an inquiry upon which its conclusions are based that the maintenance of the derivative proceeding is not in the best interest of the […]
§ 57D-8-04 – Discontinuance or settlement.
57D-8-04. Discontinuance or settlement. (a) A derivative proceeding may not be discontinued or settled without the court’s approval. If the court determines that a proposed discontinuance or settlement will substantially affect the interests of the LLC’s members, the court shall direct that notice be given to the members who would be affected. (b) The court […]
§ 57D-8-05 – Payment of expenses.
57D-8-05. Payment of expenses. On termination of the derivative proceeding, the court may do any of the following: (1) Order the LLC to pay the plaintiff’s expenses, including attorneys’ fees, incurred in the proceeding if it finds that the proceeding has resulted in a substantial benefit to the LLC. (2) Order the plaintiff to pay […]
§ 57D-8-06 – Applicability to foreign LLCs.
57D-8-06. Applicability to foreign LLCs. In any derivative proceeding in the right of a foreign LLC, the matters covered by this Article will be governed by the law of the jurisdiction of the foreign LLC’s organization except for the matters governed by G.S. 57D-8-02, 57D-8-04, and 57D-8-05. (2013-157, s. 2.)
§ 57D-8-07 – Privileged communications.
57D-8-07. Privileged communications. In any derivative proceeding, no member is entitled to obtain or have access to any communication within the scope of the LLC’s attorney-client privilege that could not be obtained by, or would not be accessible to, a party in a proceeding other than on behalf of the LLC. (2013-157, s. 2.)