Arizona § 29-3807 Other remedies in direct and derivative actions

Arizona Statutes

§ 29-3807 — Other remedies in direct and derivative actions

Arizona § 29-3807

Title 29Arizona Revised Statutes

Ch. 7ARIZONA LIMITED LIABILITY COMPANY ACT

Art. 8Actions by Members

This text of Arizona § 29-3807 (Other remedies in direct and derivative actions) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 29-3807 (2026).

Text

The court, in its discretion, at any stage in a direct or derivative proceeding, may: 1. Treat a direct action as a derivative action subject to, or exempt from, any provisions of this article the court chooses and order recovery to be paid to the limited liability company if the court finds that doing so is reasonably necessary to avoid any of the following:

(a)Unfairly exposing the company or the defendants to a multiplicity of actions.

(b)Materially adversely affecting the interests of the company's creditors.

(c)Interfering with a fair distribution of any recovery among interested persons. 2. Treat a derivative action as a direct action subject to, or exempt from, any provisions of this article the court chooses and order recovery to be paid to the plaintiff if the court finds

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The court, in its discretion, at any stage in a direct or derivative proceeding, may:

1. Treat a direct action as a derivative action subject to, or exempt from, any provisions of this article the court chooses and order recovery to be paid to the limited liability company if the court finds that doing so is reasonably necessary to avoid any of the following:

(a) Unfairly exposing the company or the defendants to a multiplicity of actions.

(b) Materially adversely affecting the interests of the company's creditors.

(c) Interfering with a fair distribution of any recovery among interested persons.

2. Treat a derivative action as a direct action subject to, or exempt from, any provisions of this article the court chooses and order recovery to be paid to the plaintiff if the court finds that justice so requires.