347.171. Action by member, conditions.

Action by member, conditions.

347.171. A member may bring an action in the right of thelimited liability company to recover a judgment in its favor ifall of the following conditions are met:

(1) The plaintiff does not have the authority under theprovisions of the operating agreement to cause the limitedliability company to sue in its own right;

(2) The plaintiff has made demand on the authorized personor persons having the authority to cause the limited liabilitycompany to institute such action requesting that such personscause the limited liability company to sue in its own right;

(3) The persons with such authority have refused to bringthe action or, after adequate time to consider the demand, havefailed to respond to such demand; and

(4) The plaintiff is a member of the limited liabilitycompany at the time of bringing the action, and was a member ofthe limited liability company at the time of the transaction ofwhich he complains, or his status as a member of the limitedliability company thereafter devolved upon him by operation oflaw or pursuant to the terms of the operating agreement from aperson who was a member at such time.

(L. 1993 S.B. 66 & 20 § 359.816)

Effective 12-1-93