Section 347.171

Title XXIII CORPORATIONS, ASSOCIATIONS AND PARTNERSHIPS

Chapter 347

Effective - 01 Dec 1993, see footnote   

  347.171.  Action by member, conditions. — A member may bring an action in the right of the limited liability company to recover a judgment in its favor if all of the following conditions are met:

  (1)  The plaintiff does not have the authority under the provisions of the operating agreement to cause the limited liability company to sue in its own right;

  (2)  The plaintiff has made demand on the authorized person or persons having the authority to cause the limited liability company to institute such action requesting that such persons cause the limited liability company to sue in its own right;

  (3)  The persons with such authority have refused to bring the action or, after adequate time to consider the demand, have failed to respond to such demand; and

  (4)  The plaintiff is a member of the limited liability company at the time of bringing the action, and was a member of the limited liability company at the time of the transaction of which he complains, or his status as a member of the limited liability company thereafter devolved upon him by operation of law or pursuant to the terms of the operating agreement from a person who was a member at such time.

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(L. 1993 S.B. 66 & 20 § 359.816)

Effective 12-01-93