§ 7-62-1001 — Right of action

Colorado § 7-62-1001

• Jurisdiction: Colorado
• Title 07: Corporations
• Art.: Colorado Uniform Limited

Text

(1) A limited partner may bring an action in the
right of a limited partnership to recover a judgment in its favor. In order to bring the
action, a limited partner must establish the following:

(a) That those general partners with authority to do so have refused to bring
the action or that an effort to cause those general partners to bring the action is not
likely to succeed;

(b) That the general partners' decision not to sue constitutes an abuse of
discretion or involves a conflict of interest that prevents an unprejudiced exercise
of judgment; and

(c) That the plaintiff was a limited partner at the time of the transaction of
which the plaintiff complains or the plaintiff's status as a limited partner had
devolved upon the plaintiff by operation of law or pursuant to the terms of the
partnership agreement from a person who was a partner at the time of the
transaction.

Legislative History

Source: L. 81: Entire article added, p. 450, � 1, effective November 1. L. 2004: (1)(c) amended, p. 1447, � 148, effective July 1.