Louisiana Code of Civil Procedure 616 – Shareholder’s derivative action when not impracticable to join all shareholders, partners, or members
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Terms Used In Louisiana Code of Civil Procedure 616
- 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. When it is not impracticable for all of the shareholders, partners, or members of a corporation or unincorporated association to join or to be joined as parties to a derivative action to enforce a right of the corporation or unincorporated association which it refuses to enforce, such action shall not be maintained as a class action. Instead, all of the shareholders, partners, or members who refuse or fail to join as plaintiffs in such an action shall be joined as defendants.
B. Derivative actions governed by this Article shall be subject to Articles 614 and 615.
Acts 1997, No. 839, §1, eff. July 1, 1997.