California Corporations Code

§ 17709.02

CORP § 17709.02 Effective Jan 1, 2023Title 2.6 · Art. 9

Statute text

(a)No action shall be instituted or maintained in right of any domestic or foreign limited liability company by any member of the limited liability company unless both of the following conditions exist:

(1)The plaintiff alleges in the complaint that the plaintiff was a member, of record or beneficially, at the time of the transaction or any part of the transaction of which the plaintiff complains, or that the plaintiff’s interest later devolved upon the plaintiff by operation of law from a member who was a member at the time of the transaction or any part of the transaction complained of. Any member who does not meet these requirements may nevertheless be allowed in the discretion of the court to maintain the action on a preliminary showing to and determination by the court, by motion and after a hearing at which the court shall consider any evidence, by affidavit or testimony, as it deems material, of all of the following:

(A)There is a strong prima facie case in favor of the claim asserted on behalf of the limited liability company.

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Legislative history

Amended by Stats. 2022, Ch. 617, Sec. 126. (SB 1202) Effective January 1, 2023.