California Corporations Code

§ 12490

CORP § 12490Div. 3 · Title 1 · Part 2 · Ch. 7

Statute text

(a)Subdivisions (c) through (f) notwithstanding, no motion to require security shall be granted in an action brought by the lesser of 100 members or 5 percent of the members.

(b)No action may be instituted or maintained in the right of any corporation by any member of such corporation unless both of the following conditions exist:

(1)The plaintiff alleges in the complaint that plaintiff was a member at the time of the transaction or any part thereof of which plaintiff complains, or that plaintiff’s membership thereafter devolved upon plaintiff by operation of law from a holder who was a holder at the time of transaction or any part thereof complained of; and

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Legislative history

Added by Stats. 1982, Ch. 1625, Sec. 3. Operative January 1, 1984.