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Current as of January 01, 2025 | Updated by Findlaw Staff
The court, in its discretion, at any stage in a direct or derivative proceeding, may:
1. Treat a direct action as a derivative action subject to, or exempt from, any provisions of this article the court chooses and order recovery to be paid to the limited liability company if the court finds that doing so is reasonably necessary to avoid any of the following:
(a) Unfairly exposing the company or the defendants to a multiplicity of actions.
(b) Materially adversely affecting the interests of the company's creditors.
(c) Interfering with a fair distribution of any recovery among interested persons.
2. Treat a derivative action as a direct action subject to, or exempt from, any provisions of this article the court chooses and order recovery to be paid to the plaintiff if the court finds that justice so requires.
Cite this article: FindLaw.com - Arizona Revised Statutes Title 29. Partnership § 29-3807. Other remedies in direct and derivative actions - last updated January 01, 2025 | https://codes.findlaw.com/az/title-29-partnership/az-rev-st-sect-29-3807/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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