Effective: April 12, 2021
Latest Legislation: Senate Bill 276 - 133rd General Assembly
(A) A member may commence or maintain a derivative action in the right of the limited liability company only if the member meets both of the following conditions:
(1) The member fairly and adequately represents the interests of the limited liability company in enforcing the right of the limited liability company.
(2) The member either:
(a) Was a member of the limited liability company at the time of the act or omission of which the member complains;
(b) Acquired a membership interest through assignment by operation of law from a person who was a member at the time of the act or omission of which the member complains.
(B) A member associated with a series of a limited liability company may commence or maintain a derivative action in the right of the series only if the member meets both of the following conditions:
(1) The member fairly and adequately represents the interests of the series in enforcing the right of the series.
(2) The member either:
(a) Was associated with the series at the time of the act or omission of which the member complains;
(b) Acquired a membership interest through assignment by operation of law from a person who was a member associated with the series at the time of the act or omission of which the member complains.