2006 New York Code - Stockholders\' Derivative Action Brought In The Right Of The Corporation To Procure A Judgment In Its Favor.

 
    § 6025.  Stockholders'  derivative  action brought in the right of the
  corporation to procure a judgment in its favor.  1.  An  action  may  be
  brought  in  the  right  of  a  corporation to procure a judgment in its
  favor, by a holder of shares or of a beneficial interest in such shares.
    2. In any such action, it shall be made to appear that  the  plaintiff
  is such a holder at the time of bringing the action and that he was such
  a  holder  at the time of the transaction of which he complains, or that
  his shares or his interest therein devolved upon  him  by  operation  of
  law.
    3.   In   any   such  action,  the  complaint  shall  set  forth  with
  particularity the efforts of the plaintiff to secure the  initiation  of
  such action by the board or the reasons for not making such effort.
    4.  Such  action  shall  not  be discontinued, compromised or settled,
  without the approval of the court having jurisdiction of the action.  If
  the court shall determine that the interest of the stockholders  of  any
  class  or  classes  thereof  will  be  substantially  affected  by  such
  discontinuance, compromise, or settlement, the court, in its discretion,
  may direct that notice, by publication or otherwise, shall be  given  to
  the  stockholders  or  class  or  classes  thereof  whose  interests  it
  determines will be so affected; if notice is so directed  to  be  given,
  the  court  may determine which one or more of the parties to the action
  shall bear the expense of giving the same, in such amount as  the  court
  shall  determine and find to be reasonable in the circumstances, and the
  amount of such expense shall be awarded as special costs of  the  action
  and recoverable in the same manner as statutory taxable costs.
    5. If the action on behalf of the corporation was successful, in whole
  or  in  part, or if anything was received by the plaintiff or plaintiffs
  or a claimant or claimants as the result of a  judgment,  compromise  or
  settlement of an action or a claim, the court may award the plaintiff or
  plaintiffs,   claimant  or  claimants,  reasonable  expenses,  including
  reasonable attorney's fees, and shall direct him or them to  account  to
  the  corporation for the remainder of the proceeds so received by him or
  them. This subdivision shall not apply to any judgment rendered for  the
  benefit  of  injured  stockholders only and limited to a recovery of the
  loss or damage sustained by them.