§ 490.1331 — Court costs and expenses

Iowa § 490.1331

• Jurisdiction: Iowa
• Title XII: BUSINESS ENTITIES
• Ch. 490: BUSINESS CORPORATIONS

Text

1. The court in an appraisal proceeding commenced under section 490.1330 shall
determine all court costs of the proceeding, including the reasonable compensation and
expenses of appraisers appointed by the court. The court shall assess the court costs against
the corporation, except that the court may assess court costs against all or some of the
shareholders demanding appraisal, in amounts which the court finds equitable, to the extent
the court finds such shareholders acted arbitrarily, vexatiously, or not in good faith with
respect to the rights provided by this subchapter.

2. The court in an appraisal proceeding may also assess the expenses of the respective
parties in amounts the court finds equitable, against any of the following:
a. Thecorporationandinfavorofanyorallshareholdersdemandingappraisalifthecourt
finds the corporation did not substantially comply with the requirements of section 490.1320,
490.1322, 490.1324, or 490.1325.
b. Either the corporation or a shareholder demanding appraisal, in favor of any other
party, if the court finds that the party against whom expenses are assessed acted arbitrarily,
vexatiously, or not in good faith with respect to the rights provided by this subchapter.
3. If the court in an appraisal proceeding finds that the expenses incurred by any
shareholder were of substantial benefit to other shareholders similarly situated and that
such expenses should not be assessed against the corporation, the court may direct that
such expenses be paid out of the amounts awarded the shareholders who were benefited.
4. To the extent the corporation fails to make a required payment pursuant to section
490.1324, 490.1325, or 490.1326, the shareholder may sue directly for the amount owed, and
to the extent successful, shall be entitled to recover from the corporation all expenses of the
suit.