Section 7.41: Standing
70 words·~1 min read·
/ma/part-i/title-xxii/chapter-156d/7-23·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 7.41. STANDING
A shareholder may not commence or maintain a derivative proceeding unless the shareholder:
(1)was a shareholder of the corporation at the time of the act or omission complained of or became a shareholder through transfer by operation of law from one who was a shareholder at that time; and
(2)fairly and adequately represents the interests of the corporation in enforcing the right of the corporation.