Louisiana Revised Statutes 12:1-741 – Standing
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Terms Used In Louisiana Revised Statutes 12:1-741
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
A. A shareholder may not commence or maintain a derivative proceeding unless the shareholder satisfies all of the following conditions:
(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.
(2) Fairly and adequately represents the interests of the corporation in enforcing the right of the corporation.
B. A shareholder who meets the requirements of Subsection A of this Section may file a derivative proceeding to enforce a right of the corporation, but only after the shareholder satisfies the requirements of La. Rev. Stat. 12:1-742.
Acts 2014, No. 328, §1, eff. Jan. 1, 2015.