Ark. Code § 4-38-802

Current with legislation from 2024 Fiscal and Special Sessions.

Section 4-38-802 - Derivative action

A member may maintain a derivative action to enforce a right of a limited liability company if:

(1) the member first makes a demand on the other members in a member-managed limited liability company, or the managers of a manager-managed limited liability company, requesting that they cause the company to bring an action to enforce the right, and the managers or other members do not bring the action within a reasonable time; or

(2) a demand under paragraph (1) would be futile.

Ark. Code § 4-38-802

Added by Act 2021, No. 1041,§ 26, eff. 7/28/2021.