Derivative action by beneficial owner

1. Law
2. District of Columbia Code
3. Business Organizations. [Enacted title]
4. Statutory Trusts
5. Beneficial Owners
6. Derivative action by beneficial owner

A beneficial owner may maintain a derivative action to enforce a right of a statutory trust if:

(1) The beneficial owner first makes a demand on the trustees, requesting that the trustees cause the trust to bring an action to redress the injury or enforce the right, and the trustees do not bring the action within a reasonable time; or

(2) A demand would be futile.

(Mar. 5, 2013, D.C. Law 19-210, § 2(l)(7)(G), 59 DCR 13171.)

Section References

This section is referenced in § 29-1201.04.

Editor's Notes

Application of Law 19-210: Section 7 of D.C. Law 19-210 provided that the act shall apply as of January 1, 2012.

Download our app to see the most-to-date content.