Code of Alabama - Title 10A: Alabama Business and Nonprofit Entities Code - Section 10A-9A-9.08 - Proceeds and expenses

Section 10A-9A-9.08 - 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 limited partnership and not to the derivative plaintiff; and

(2) if the derivative plaintiff receives any proceeds, the derivative plaintiff shall immediately remit them to the limited 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, from the recovery of the limited partnership.

(Act 2016-379, §1.)

Last modified: May 3, 2021