Section 450.1496 - Discontinuance or settlement of derivative proceeding; judicial approval; notice; expense.
BUSINESS CORPORATION ACT (EXCERPT)
Act 284 of 1972
450.1496 Discontinuance or settlement of derivative proceeding; judicial approval; notice; expense.
Sec. 496.
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 corporation's shareholders or a class of shareholders, the court shall direct that notice be given to the shareholders affected. If notice is directed to be given to the affected shareholders, the court may determine whether 1 or more of the parties to the action shall bear the expense of giving the notice, in the amount as the court determines and finds to be reasonable under the circumstances. The amount of expense shall be awarded as special costs of the action and recoverable in the same manner as statutory taxable costs.
History: Add. 1989, Act 121, Eff. Oct. 1, 1989 ;-- Am. 1993, Act 91, Eff. Oct. 1, 1993