§ 55-7-42. Demand.
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§ 55-7-42. Demand.
No shareholder may commence a derivative proceeding until both of the following have occurred:
(1)A written demand has been delivered to the corporation to take suitable action. The written demand shall describe in reasonable detail the reasons for the demand and the action being requested and state that the shareholder may commence a derivative proceeding if the action is not taken. If the shareholder is a beneficial shareholder or an unrestricted voting trust beneficial owner, the written demand shall be accompanied by evidence of the beneficial ownership.
(2)90 days have expired from the date the demand was made unless, prior to the expiration of the 90 days, the shareholder was notified that the corporation rejected the demand, or unless irreparable injury to the corporation would result by waiting for the expiration of the 90-day period. (1995, c. 149, s. 1; 2025-33, s. 5(b).)