Effective - 28 Aug 1943
507.070. Class actions — representatives — secondary actions by stockholders — dismissal or compromise. — 1. If persons constituting a class are very numerous or it is impracticable to bring them all before the court, such of them, one or more, as will fairly insure adequate representation of all may, on behalf of all, sue or be sued, when the character of the right sought to be enforced for or against the class is
(1) Joint, or common, or secondary in a sense that the owner of a primary right refuses to enforce that right and a member of the class thereby becomes entitled to enforce it;
(2) Several, and the object of the action is the adjudication of claims which do or may affect specific property involved in the action; or
(3) Several, and there is a common question of law or fact affecting the several rights and a common relief is sought. Nothing in this section shall be construed to affect the rights or liabilities of labor unions to sue or be sued.
2. In an action brought to enforce a secondary right on the part of one or more shareholders in an association, incorporated or unincorporated, because the association refuses to enforce rights which may properly be asserted by it, the petition shall aver that the plaintiff was a shareholder at the time of the transaction of which he complains or that his share thereafter devolved on him by operation of law. The petition shall also set forth with particularity the efforts of the plaintiff to secure from the managing directors or trustees and, if necessary, from the shareholders such action as he desires, and the reasons for his failure to obtain such action or the reasons for not making such effort.
3. A class action shall not be dismissed or compromised without the approval of the court. If the right sought to be enforced is one defined in subdivision (1) of subsection 1 notice of the proposed dismissal or compromise shall be given to all members of the class in such manner as the court directs. If the right is one defined in subdivisions (2) or (3) of subsection 1 notice shall be given only after the court requires it.
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(L. 1943 p. 353 § 19)