Sec. 492a. A shareholder may not commence or maintain a derivative proceeding unless the shareholder meets all of the following criteria: (a) The shareholder 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. (b) The shareholder fairly and adequately represents the interests of the corporation in enforcing the right of the corporation. (c) The shareholder continues to be a shareholder until the time of judgment, unless the failure to continue to be a shareholder is the result of corporate action in which the former shareholder did not acquiesce and the derivative proceeding was commenced prior to the termination of the former shareholder's status as a shareholder.
Mich. Comp. Laws § 450.1492a
Commencement of derivative proceeding by shareholder; criteria
Applied in 3 court decisions — leading case 250 Mich. App. 270 - Estes v. Idea Engineering & Fabricating, Inc (2002)
Most recently applied in 903 F. Supp. 2d 507 - Meathe v. Ret (October 2012)
Add. 1989, Act 121, Eff
How often courts cite this section
Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
Official source: Michigan Legislature. Reproduced from public-domain Michigan statutes; confirm against the official source for the current text. Not legal advice.