Section 10-12-25 Derivative actions.
Section 10-12-25
Derivative actions.
(a) A member may bring an action in the right of a limited liability company to recover a judgment in its favor if the members or managers with authority to do so have refused to bring the action or if an effort to cause those members or managers to bring the action is not likely to succeed.
(b) In a derivative action, the plaintiff shall be a member at the time of bringing the action or have succeeded to the right of a member.
(c) If a derivative action is successful, in whole or in part, or if anything is received by the plaintiff as a result of a judgment, compromise, or settlement of an action or claim, the court may award the plaintiff reasonable expenses, including reasonable attorney's fees, and shall direct the plaintiff to remit to the limited liability company the remainder of those proceeds.
(Acts 1993, No. 93-724, p. 1425, §25.)