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North Carolina General Statutes Chapter 57D. North Carolina Limited Liability Company Act § 57D-8-01. Member derivative actions

Current as of January 01, 2023 | Updated by Findlaw Staff

(a) Subject to the provisions of G.S. 57D-8-02 and G.S. 57D-8-03, a member may bring a derivative action if the following conditions are met:

(1) Either (i) the member was a member of the LLC at the time of the act or omission for which the proceeding is brought or (ii) all or any portion of the member's ownership interest devolves by operation of law from an ownership interest that was owned by a member at that time.

(2) The member made written demand on the LLC to take suitable action, and either (i) the LLC notified the member that the member's demand was rejected, (ii) 90 days have expired from the date the demand was made, or (iii) irreparable injury to the LLC would result by waiting for the expiration of the 90-day period.

(b) For purposes of this Article, a “derivative action” or a “derivative proceeding” is a proceeding brought in the superior court of this State in the right of an LLC or, to the extent provided in G.S. 57D-8-06, in the right of a foreign LLC, to recover a judgment in favor of the LLC or, if applicable, the foreign LLC.

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Cite this article: FindLaw.com - North Carolina General Statutes Chapter 57D. North Carolina Limited Liability Company Act § 57D-8-01. Member derivative actions - last updated January 01, 2023 | https://codes.findlaw.com/nc/chapter-57d-north-carolina-limited-liability-company-act/nc-gen-st-sect-57d-8-01/

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