2020 Code of Alabama
Title 10A - Alabama Business and Nonprofit Entities Code.
Chapter 2A
Article 7 - Stockholders.
Division D - Derivative Proceedings.
Section 10A-2A-7.42 - Standing.

Universal Citation:
AL Code § 10A-2A-7.42 (2020)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.

Section 10A-2A-7.42

Standing.

A stockholder may commence or maintain a derivative action in the right of the corporation only if the stockholder:

(1) fairly and adequately represents the interests of the corporation in enforcing the right of the corporation; and

(2) either:

(A) was a stockholder of the corporation at the time of the act or omission of which the stockholder complains; or

(B) whose status as a stockholder devolved upon the person by operation of law from a person who was a stockholder at the time of the act or omission of which the stockholder complains.

(Act 2019-94, §1.)

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