Proper plaintiff

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§ 1302. Proper plaintiff

(a) A derivative action to enforce a right of a mutual benefit enterprise may be maintained only by a person that:

(1) is a member or a dissociated member at the time the action is commenced and:

(A) was a member when the conduct giving rise to the action occurred; or

(B) whose status as a member devolved upon the person by operation of law or the organic rules from a person that was a member at the time of the conduct; and

(2) adequately represents the interests of the enterprise.

(b) If the sole plaintiff in a derivative action dies while the action is pending, the court may permit another member who meets the requirements of subsection (a) of this section to be substituted as plaintiff. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)


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