§ 627 — Security for expenses in shareholders' derivative action brought in the right of the corporation to procure a judgment in its favor

New York § 627

• Jurisdiction: New York
• Law BSC: Business Corporation
• Art. 6: Shareholders

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§ 627. Security for expenses in shareholders' derivative action brought\n in the right of the corporation to procure a judgment in its\n favor.\n In any action specified in section 626 (Shareholders' derivative\naction brought in the right of the corporation to procure a judgment in\nits favor), unless the plaintiff or plaintiffs hold five percent or more\nof any class of the outstanding shares or hold voting trust certificates\nor a beneficial interest in shares representing five percent or more of\nany class of such shares, or the shares, voting trust certificates and\nbeneficial interest of such plaintiff or plaintiffs have a fair value in\nexcess of fifty thousand dollars, the corporation in whose right such\naction is brought shall be entitled at any stage of the proceedings\nbefore final judgment to require the plaintiff or plaintiffs to give\nsecurity for the reasonable expenses, including attorney's fees, which\nmay be incurred by it in connection with such action and by the other\nparties defendant in connection therewith for which the corporation may\nbecome liable under this chapter, under any contract or otherwise under\nlaw, to which the corporation shall have recourse in such amount as the\ncourt having jurisdiction of such action shall determine upon the\ntermination of such action. The amount of such security may thereafter\nfrom time to time be increased or decreased in the discretion of the\ncourt having jurisdiction of such action upon showing that the security\nprovided has or may become inadequate or excessive.\n