§ 1301. Derivative action A member may maintain a derivative action to enforce a right of a mutual benefit enterprise if: (1) the member demands that the enterprise bring an action to enforce the right; and (2) any of the following occur: (A) the enterprise does not, within 90 days after the member makes the […]
§ 1302. Proper plaintiff (a) A derivative action to enforce a right of a mutual benefit enterprise may be maintained only by a person that: (1) is a member or a dissociated member at the time the action is commenced and: (A) was a member when the conduct giving rise to the action occurred; or […]
§ 1303. Pleading In a derivative action to enforce a right of a mutual benefit enterprise, the complaint shall state: (1) the date and content of the plaintiff’s demand under subdivision 1301(1) of this title and the enterprise’s response; (2) if 90 days have not expired since the demand, how irreparable harm to the enterprise […]
§ 1304. Approval for discontinuance or settlement A derivative action to enforce a right of a mutual benefit enterprise may not be discontinued or settled without the court’s approval. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)
§ 1305. Proceeds and expenses (a) Except as otherwise provided in subsection (b) of this section: (1) any proceeds or other benefits of a derivative action to enforce a right of a mutual benefit enterprise, whether by judgment, compromise, or settlement, belong to the enterprise and not to the plaintiff; and (2) if the plaintiff […]
