§ 1301.
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/vt/1301A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 1301. Derivative action
A member may maintain a derivative action to enforce a right of a mutual benefit enterprise if:
(1)the member demands that the enterprise bring an action to enforce the right; and
(2)any of the following occur:
(A)the enterprise does not, within 90 days after the member makes the demand, agree to bring the action;
(B)the enterprise notifies the member that it has rejected the demand;
(C)irreparable harm to the enterprise would result by waiting 90 days after the member makes the demand; or
(D)the enterprise agrees to bring an action demanded and fails to bring the action within a reasonable time. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)