Louisiana Code of Civil Procedure 611 – Derivative actions; prerequisites
Terms Used In Louisiana Code of Civil Procedure 611
- 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 a corporation or unincorporated association refuses to enforce a right of the corporation or unincorporated association, a shareholder, partner, or member thereof may bring a derivative action to enforce the right on behalf of the corporation or unincorporated association. A derivative action may be maintained as a class action when the persons constituting the class are so numerous as to make it impracticable for all of them to join or be joined as parties. In the case of a derivative class action, Articles 594 and 595 shall apply.
B. If a derivative action is a “derivative proceeding” as defined in the Business Corporation Act, the action is exempt from the provisions of this Chapter other than this Subsection, and is subject instead to the provisions of the Business Corporation Act concerning derivative proceedings.
Acts 1997, No. 839, §1, eff. July 1, 1997; Acts 2014, No. 328, §4, eff. Jan. 1, 2015.