A shareholder may not commence or maintain a derivative proceeding unless the shareholder: (1) Was a shareholder of the corporation at the time of the act or omission complained of or became a shareholder through transfer by operation of law from one who was a shareholder at that time; and (2) fairly and adequately represents the interests of the corporation in enforcing the right of the corporation.
Conn. Gen. Stat. § 33-721
Standing
Known as the Connecticut Business Corporation Act
The act spans §§ 33–33 (278 sections).
Applied in 2 court decisions — leading case 48 F. Supp. 3d 186 - Beckworth ex rel. Discount Trophy & Co. v. Bizier (2014)
Most recently applied in 138 F. Supp. 3d 144 - Beckworth ex rel. Discount Trophy & Co. v. Bizier (September 2015)
(P.A. 94-186, S. 76, 215.) History: P.A. 94-186 effective January 1, 1997.
Official source: Connecticut General Assembly. Reproduced from public-domain Connecticut statutes; confirm against the official source for the current text. Not legal advice.