16-16-1301. Derivative action.

120 words·~1 min read·/ut/title-16/chapter-16/16-16-1301

A 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 cooperative association if:

(1)the member demands that the association bring an action to enforce the right; and

(2)any of the following occur:

(a)the association does not, not later than 90 days after the member makes the demand, agree to bring the action;

(b)the association notifies the member that it has rejected the demand;

(c)irreparable harm to the association would result by waiting 90 days after the member makes the demand; or

(d)the association agrees to bring an action demanded and fails to bring the action within a reasonable time.

Enacted by Chapter 363 , 2008 General Session