§ 10-15-56 — Member or stockholder derivative actions

1. No action may be instituted or maintained in the right of any association by a member
or stockholder unless the member or stockholder:
a. Alleges in a complaint that the person was a member or registered stockholder
when any part of the transaction of which the person complains took place, or
that the person's stock thereafter devolved upon the person by operation of law
from a stockholder at such time.
b. Alleges in a complaint with particularity the person's efforts to secure from the
board such action as the person desires. The person shall allege further that the
person has either informed the association or board in writing of the ultimate facts
of each claim for relief against each director or that the person has delivered to
the association or board a copy of the complaint which the person proposes to
file. The person shall state the reasons for the person's failure to obtain such
action or the reasons for not making such effort.
2. The action shall not be dismissed or compromised without the approval of the court.
3. If anything is recovered or obtained as the result of the action, whether by means of a
compromise and settlement or by a judgment, the court may, out of the proceeds of
the action, award the plaintiff the reasonable expenses of maintaining the action,
including reasonable attorney's fees, and may direct the plaintiff to account to the
association for the remainder of such proceeds.
4. In any action brought in the right of an association by less than three percent of the
members or by holders of less than three percent of any class of stock outstanding,
the defendants may require the plaintiff to give security for the reasonable expenses of
defending such action, including attorney's fees. The amount of such security may
thereafter be increased or decreased in the discretion of the court upon showing that
the security provided is or may be inadequate or is excessive.