Section 7-13.1-901. – Direct action by partner. [Effective January 1, 2023.]

§ 7-13.1-901. Direct action by partner. [Effective January 1, 2023.] (a) Subject to subsection (b) of this section, a partner may maintain a direct action against another partner or the limited partnership, with or without an accounting as to the partnership’s activities and affairs, to enforce the partner’s rights and otherwise protect the partner’s interests, […]

Section 7-13.1-902. – Derivative action. [Effective January 1, 2023.]

§ 7-13.1-902. Derivative action. [Effective January 1, 2023.] A partner may maintain a derivative action to enforce a right of a limited partnership if: (1) The partner first makes a demand on the general partners, requesting that they cause the partnership to bring an action to enforce the right, and the general partners do not […]

Section 7-13.1-903. – Proper plaintiff. [Effective January 1, 2023.]

§ 7-13.1-903. Proper plaintiff. [Effective January 1, 2023.] A derivative action to enforce a right of a limited partnership may be maintained only by a person that is a partner at the time the action is commenced and: (1) Was a partner when the conduct giving rise to the action occurred; or (2) Whose status […]

Section 7-13.1-904. – Pleading. [Effective January 1, 2023.]

§ 7-13.1-904. Pleading. [Effective January 1, 2023.] In a derivative action, the complaint must state with particularity: (1) The date and content of plaintiff’s demand and the response to the demand by the general partner; or (2) Why the demand should be excused as futile. History of Section.P.L. 2022, ch. 121, § 2, effective January […]

Section 7-13.1-905. – Special litigation committee. [Effective January 1, 2023.]

§ 7-13.1-905. Special litigation committee. [Effective January 1, 2023.] (a) If a limited partnership is named as or made a party in a derivative proceeding, the partnership may appoint a special litigation committee to investigate the claims asserted in the proceeding and determine whether pursuing the action is in the best interests of the partnership. […]

Section 7-13.1-906. – Proceeds and expenses. [Effective January 1, 2023.]

§ 7-13.1-906. Proceeds and expenses. [Effective January 1, 2023.] (a) Except as otherwise provided in subsection (b) of this section: (1) Any proceeds or other benefits of a derivative action, whether by judgment, compromise, or settlement, belong to the limited partnership and not to the plaintiff; and (2) If the plaintiff receives any proceeds, the […]