488.1005 Proceeds and expenses.
132 words·~1 min read·
/ia/chapter-488-uniform-limited-partnership-act/488-1005·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. Except as otherwise provided in subsection 2:
a. Any proceeds or other benefits of a derivative action, whether by judgment, compromise, or settlement, belong to the limited partnership and not to the derivative plaintiff.
b. If the derivative plaintiff receives any proceeds, the derivative plaintiff shall immediately remit them to the limited partnership.
2. If a derivative action is successful in whole or in part, the court may award the plaintiff reasonable expenses, including reasonable attorney fees, from the recovery of the limited partnership.
3. If the court finds that the derivative proceeding was commenced or maintained without reasonable cause or for an improper purpose, it may order the plaintiff to pay any defendant’s reasonable expenses, including reasonable attorney fees, incurred in defending the action.
2004 Acts, ch 1021, §88, 118