16-20-803. Proper plaintiff.
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/ut/title-16/chapter-20/16-20-803·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 10/1/2026
16-20-803. Proper plaintiff.
A derivative action to enforce a right of a limited liability company may be maintained only by a person that is a member at the time the action is commenced and:
(1)was a member when the conduct giving rise to the action occurred; or
(2)whose status as a member devolved on the person by operation of law or in accordance with the terms of the operating agreement from a person that was a member at the time of the conduct.
Renumbered and Amended by Chapter 93 , 2026 General Session