1.Definition.
As used in this section, "closely held limited liability company" means a limited liability company that has:
A. Fewer than 35 members; and [2009, c. 629, Pt. A, §2 (NEW); 2009, c. 629, Pt. A, §3 (AFF).]
B. No transferable interests listed on a national securities exchange or regularly quoted in an over-the-counter market by one or more members
of a national securities association. [2011, c. 113, Pt. A, §21 (AMD).]
[
2011, c. 113, Pt. A, §21 (AMD)
.]
2.Limitation on derivative actions.
Except to the extent ordered by the court in an action under subsection 3, paragraph A, sections 1632 to 1636 do not apply
to a closely held limited liability company.
[
2009, c. 629, Pt. A, §2 (NEW);
2009, c. 629, Pt. A, §3 (AFF)
.]
3.Exception to limitation on derivative actions.
If justice requires:
A. A derivative action commenced by a member of a closely held limited liability company may be treated by a court as a direct
action brought by the member for the member's own benefit; and [2009, c. 629, Pt. A, §2 (NEW); 2009, c. 629, Pt. A, §3 (AFF).]
B. Recovery in a direct or derivative action by a member of a closely held limited liability company may be paid directly to
the plaintiff or to the closely held limited liability company if necessary to protect the interests of creditors or of other
members. [2009, c. 629, Pt. A, §2 (NEW); 2009, c. 629, Pt. A, §3 (AFF).]
[
2009, c. 629, Pt. A, §2 (NEW);
2009, c. 629, Pt. A, §3 (AFF)
.]
SECTION HISTORY
2009, c. 629, Pt. A, §2 (NEW).
2009, c. 629, Pt. A, §3 (AFF).
2011, c. 113, Pt. A, §21 (AMD).
Data for this page extracted on 10/16/2012 08:27:01.