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2020 Code of Alabama
Title 10A - Alabama Business and Nonprofit Entities Code.
Chapter 2A
Article 7 - Stockholders.
Division D - Derivative Proceedings.
Section 10A-2A-7.47 - Proceeds and Expenses.
Universal Citation: AL Code § 10A-2A-7.47 (2020)
Section 10A-2A-7.47
Proceeds and expenses.
(a) Except as otherwise provided in subsection (b):
(1) any proceeds or other benefits of a derivative action, whether by judgment, compromise, or settlement, belong to the corporation and not to the derivative plaintiff; and
(2) if the derivative plaintiff receives any proceeds, the derivative plaintiff shall immediately remit them to the corporation.
(b) If a derivative action is successful in whole or in part, the court may award the plaintiff reasonable expenses, including reasonable attorney's fees, from the recovery of the corporation.
(Act 2019-94, §1.)
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