47-34A-1102. Derivative action.
82 words·~1 min read·
/sd/title-47/chapter-47-34/47-34a-1102A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A member may maintain a derivative action to enforce a right of a limited liability company if:
(1)The member first makes a demand on the other members in a member-managed limited liability company, or the managers of a manager-managed limited liability company, requesting that they cause the company to bring an action to enforce the right, and the managers or other members do not bring the action within a reasonable time; or
(2)A demand under paragraph
(1)would be futile.