Alabama § 10A-2A-7.42 Standing

Alabama Statutes

§ 10A-2A-7.42 — Standing

Alabama § 10A-2A-7.42

JurisdictionAlabama

Title 10AAlabama Business and Nonprofit Entities Code

Ch. 2AAlabama Business Corporation Law

Art. 7Stockholders

Div. DDerivative Proceedings

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Bluebook

Ala. Code § 10A-2A-7.42 (2026).

Text

A stockholder may commence or maintain a derivative action in the right of the corporation only if the stockholder:

(1)fairly and adequately represents the interests of the corporation in enforcing the right of the corporation; and

(2)either:

(A)was a stockholder of the corporation at the time of the act or omission of which the stockholder complains; or

(B)whose status as a stockholder devolved upon the person by operation of law from a person who was a stockholder at the time of the act or omission of which the stockholder complains.

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A stockholder may commence or maintain a derivative action in the right of the corporation only if the stockholder:
(1) fairly and adequately represents the interests of the corporation in enforcing the right of the corporation; and
(2) either:
(A) was a stockholder of the corporation at the time of the act or omission of which the stockholder complains; or
(B) whose status as a stockholder devolved upon the person by operation of law from a person who was a stockholder at the time of the act or omission of which the stockholder complains.