14A:3-6.2 Conditions for commencing, maintaining proceeding.
79 words·~1 min read·
/nj/title-14a/chapter-3/14a-3-6-2·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
2. 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 remains a shareholder throughout the derivative proceeding; and
(2)fairly and adequately represents the interests of the corporation in enforcing the right of the corporation.
L.2013, c.42, s.2.