2022 Code of Alabama
Title 10A - Alabama Business and Nonprofit Entities Code.
Chapter 5A - Alabama Limited Liability Company Law of 2014.
Article 9 - Actions by Members.
Section 10A-5A-9.03 - Standing.
Section 10A-5A-9.03
Standing.
(a) A member may commence or maintain a derivative action in the right of the limited liability company only if the member:
(1) fairly and adequately represents the interests of the limited liability company in enforcing the right of the limited liability company; and
(2) either:
(A) was a member of the limited liability company at the time of the act or omission of which the member complains; or
(B) whose status as a member devolved upon the person by operation of law or pursuant to the terms of the limited liability company agreement from a person who was a member at the time of the act or omission of which the member complains.
(b) A member associated with a series of a limited liability company may commence or maintain a derivative action in the right of the series only if the member:
(1) fairly and adequately represents the interests of the series in enforcing the right of the series; and
(2) either:
(A) was associated with the series at the time of the act or omission of which the member complains; or
(B) whose status as a member associated with the series devolved upon the person by operation of law or pursuant to the terms of the limited liability company agreement from a person who was a member associated with the series at the time of the act or omission of which the member complains.
(Act 2014-144, p. 265, §1.)
