A shareholder may not commence or maintain a derivative proceeding unless the shareholder: (1) Was a shareholder of the corporation at the time of the act or omission complained of or became a shareholder through transfer by operation of law from one who was a shareholder at that time; and (2) fairly and adequately represents the interests of the corporation in enforcing the right of the corporation.
(P.A. 94-186, S. 76, 215.)
History: P.A. 94-186 effective January 1, 1997.
Defendant who is no longer a shareholder in the corporation cannot maintain a derivative action on its behalf. 104 CA 810.