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Rule 23.1. Derivative Actions

Arizona Revised Statutes AnnotatedRules of Civil Procedure for the Superior Courts of ArizonaEffective: September 1, 2019

Arizona Revised Statutes Annotated
Rules of Civil Procedure for the Superior Courts of Arizona (Refs & Annos)
IV. Parties
Effective: September 1, 2019
16 A.R.S. Rules of Civil Procedure, Rule 23.1
Rule 23.1. Derivative Actions
(a) Applicability. This rule applies when one or more shareholders, members, or partners--as applicable--of a corporation, limited liability company, limited partnership, or unincorporated association bring a derivative action to enforce a right that the corporation, limited liability company, limited partnership, or unincorporated association may properly assert but has failed to enforce.
(b) Pleading Requirements. The complaint must:
(1) be verified;
(2) allege facts sufficient to show that the plaintiff has standing to maintain the derivative action; and
(3) allege facts sufficient to show that the plaintiff satisfies all statutory and other requirements under the law for maintaining the derivative action.
(c) Settlement, Voluntary Dismissal, and Compromise. A derivative action may not be settled, voluntarily dismissed, or compromised without court approval. Notice of a proposed settlement, voluntary dismissal, or compromise must be given to shareholders, members, or partners--as applicable--in the manner that the court orders. If the court determines that a proposed settlement, voluntary dismissal, or compromise will substantially affect the interests of the shareholders, members, or partners--or a class of shareholders, members, or partners--the court must order that notice be given to the affected shareholders, members, or partners.

Credits

Added Sept. 2, 2016, effective Jan. 1, 2017.
16 A. R. S. Rules Civ. Proc., Rule 23.1, AZ ST RCP Rule 23.1
Current with amendments received through 08/15/2020.
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