Arizona § 29-3806 Proceeds and expenses; voluntary dismissal or settlement

Arizona Statutes

§ 29-3806 — Proceeds and expenses; voluntary dismissal or settlement

Arizona·Title 29 Arizona Revised Statutes·Ch. 7 ARIZONA LIMITED LIABILITY COMPANY ACT·Art. 8 Actions by Members

A.Except as otherwise provided in subsection B or C of this section or section 29-3807, both of the following apply:

1.Any proceeds or other benefits of a derivative action, whether by judgment, compromise or settlement, belong to the limited liability company and not to the plaintiff.

2.If the plaintiff receives any proceeds, the plaintiff shall remit them immediately to the company.

B.If a derivative action is successful, in whole or in part, the court may award the plaintiff reasonable expenses, including reasonable attorney fees and costs, from the recovery of the limited liability company.

C.If the court finds that the derivative action was brought without reasonable cause, the court may require the plaintiff to pay to the defendants the defendants' reasonable expenses, inclu

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A. Except as otherwise provided in subsection B or C of this section or section 29-3807, both of the following apply:

1. Any proceeds or other benefits of a derivative action, whether by judgment, compromise or settlement, belong to the limited liability company and not to the plaintiff.

2. If the plaintiff receives any proceeds, the plaintiff shall remit them immediately to the company.

B. If a derivative action is successful, in whole or in part, the court may award the plaintiff reasonable expenses, including reasonable attorney fees and costs, from the recovery of the limited liability company.

C. If the court finds that the derivative action was brought without reasonable cause, the court may require the plaintiff to pay to the defendants the defendants' reasonable expenses, including reasonable attorney fees and costs, incurred in the defense of the action.

D. A derivative action on behalf of a limited liability company may not be voluntarily dismissed or settled without the court's approval.

Arizona § 29-3806 (Proceeds and expenses; voluntary dismissal or settlement) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.