§ 7-58-1305 — Proceeds and expenses

Colorado § 7-58-1305

• Jurisdiction: Colorado
• Title 07: Corporations
• Art.: Uniform Limited Cooperative Association Act

Text

(1) Except as otherwise provided in
subsection (2) of this section:

(a) Any proceeds or other benefits of a derivative action to enforce a right of
a limited cooperative association, whether by judgment, compromise, or settlement,
belong to the association and not to the plaintiff; and

(b) If the plaintiff in the derivative action receives any proceeds, the plaintiff
shall immediately remit them to the association.

(2) If a derivative action to enforce a right of a limited cooperative
association 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 association if not otherwise awarded against the defendant.

(3) On the termination of a derivative proceeding commenced pursuant to
this part 13, where the court finds that the proceeding was commenced or
maintained without reasonable cause or for an improper purpose, the court may
order the plaintiff to pay any of the defendant's reasonable expenses, including
attorney fees, incurred by the defendant in connection with the defense of the
proceeding.

Legislative History

Source: L. 2011: Entire article added, (SB 11-191), ch. 197, p. 810, � 1, effective April 2, 2012.