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Iowa Code § 489.806

Proceeds and expenses

Redline — January 1, 2024 → current.View current text →
Current — January 1, 2025
As of January 1, 2024
1. Except as otherwise provided in subsection 2, all of the following apply:
1. Except as otherwise provided in subsection 2, all of the following apply:
a. Any proceeds or other benefits of a derivative action, whether by judgment, compromise, or settlement, belong to the limited liability company and not to the plaintiff.
a. Any proceeds or other benefits of a derivative action, whether by judgment, compromise, or settlement, belong to the limited liability company and not to the plaintiff.
b. If the plaintiff receives any proceeds, the plaintiff shall remit them immediately to the limited liability company.
b. If the plaintiff receives any proceeds, the plaintiff shall remit them immediately to the limited liability company.
2. 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 limited liability company.
2. 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 limited liability company.
3. A derivative action on behalf of a limited liability company shall not be voluntarily dismissed or settled without the court’s approval.
3. A derivative action on behalf of a limited liability company shall not be voluntarily dismissed or settled without the court’s approval.
C2009, §489.906
C2009, §489.906
C2024, §489.806
C2024, §489.806
Former §489.806 repealed effective January 1, 2024, by
Former §489.806 repealed effective January 1, 2024, by
2023 amendment effective January 1, 2024; 2023 Acts, ch 152, §161
Section transferred from §489.906 in Code 2024 pursuant to directive in
Section amended

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