Indiana § 23-1-32-1 Right to commence or maintain proceeding

Indiana Statutes

§ 23-1-32-1 — Right to commence or maintain proceeding

Indiana § 23-1-32-1

Title 23BUSINESS AND OTHER ASSOCIATIONS

Art. 1INDIANA BUSINESS CORPORATION LAW

Ch. 32Derivative Proceedings

This text of Indiana § 23-1-32-1 (Right to commence or maintain proceeding) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 23-1-32-1 (2026).

Text

A person may not commence a proceeding in
the right of a domestic or foreign corporation unless the person was a
shareholder of the corporation when the transaction complained of
occurred or unless the person became a shareholder through transfer by
operation of law from one who was a shareholder at that time. The
derivative proceeding may not be maintained if it appears that the
person commencing the proceeding does not fairly and adequately
represent the interests of the shareholders in enforcing the right of the
corporation.

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A person may not commence a proceeding in
the right of a domestic or foreign corporation unless the person was a
shareholder of the corporation when the transaction complained of
occurred or unless the person became a shareholder through transfer by
operation of law from one who was a shareholder at that time. The
derivative proceeding may not be maintained if it appears that the
person commencing the proceeding does not fairly and adequately
represent the interests of the shareholders in enforcing the right of the
corporation.