Current through 2024 legislation effective May 8, 2024
Section 1784 - Proceeds and expenses(a) Proceeds.--Except as provided in subsection (b):(1) any proceeds or other benefits of a derivative action, whether by judgment, compromise or settlement, belong to the business corporation and not to the plaintiff; and(2) if the plaintiff or its counsel receives any proceeds, the proceeds shall be remitted immediately to the corporation.(b) Expenses.--If a derivative action is successful in whole or in part, the court may award the plaintiff reasonable expenses, including reasonable attorney fees and costs, from the recovery of the business corporation , but in no event shall the attorney fees awarded exceed a reasonable proportion of the value of the relief, including nonpecuniary relief, obtained by the plaintiff for the corporation.(c) Certain provisions of articles ineffective.--This section may not be relaxed by any provision of the articles.Added by P.L. TBD 2016 No. 170, § 6, eff. 2/19/2017.