Iowa § 489.806 Proceeds and expenses

Iowa Statutes

§ 489.806 — Proceeds and expenses

Iowa § 489.806

Title XIIBUSINESS ENTITIES

Ch. 489UNIFORM LIMITED LIABILITY COMPANY ACT

This text of Iowa § 489.806 (Proceeds and expenses) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 489.806 (2026).

Text

1.Except as otherwise provided in subsection 2, all of the following apply:

a.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.

b.If the plaintiff receives any proceeds, the plaintiff shall remit them immediately to the limited liability company.

2.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.

3.A derivative action on behalf of a limited liability company shall not be voluntarily dismissed or settled without the court’s approval.

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1. Except as otherwise provided in subsection 2, all of the following apply:
a. 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.
b. If the plaintiff receives any proceeds, the plaintiff shall remit them immediately to the
limited liability company.
2. 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.
3. A derivative action on behalf of a limited liability company shall not be voluntarily
dismissed or settled without the court’s approval.