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Ala. Code § 10A-2A-7.42

Standing.

Known as the Alabama Business and Nonprofit Entity Code

The act spans §§ 10A-1-1.01 to 10A-9A-9.09 (1,341 sections).

(Act 2019-94, §1.)

A stockholder may commence or maintain a derivative action in the right of the corporation only if the stockholder:

(1) fairly and adequately represents the interests of the corporation in enforcing the right of the corporation; and

(2) either:

(A) was a stockholder of the corporation at the time of the act or omission of which the stockholder complains; or

(B) whose status as a stockholder devolved upon the person by operation of law from a person who was a stockholder at the time of the act or omission of which the stockholder complains.

Official source: Alabama Legislature (ALISON). Reproduced from public-domain Alabama statutes; confirm against the official source for the current text. Not legal advice.