TITLE 30

CORPORATIONS

CHAPTER 24

LIMITED PARTNERSHIPS

PART 9

ACTIONS BY PARTNERS

30-24-906.  PROCEEDS AND EXPENSES. (a)  Except as otherwise provided in subsection (b) of this section:

(1)  Any proceeds or other benefits of a derivative action, whether by judgment, compromise, or settlement, belong to the limited partnership and not to the plaintiff; and

(2)  If the plaintiff receives any proceeds, the plaintiff shall remit them immediately to the partnership.

(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 and costs, from the recovery of the limited partnership.

(c)  A derivative action on behalf of a limited partnership may not be voluntarily dismissed or settled without the court’s approval.

History:

[30-24-906, added 2015, ch. 243, sec. 41, p. 870.]