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N.C. Gen. Stat. § 55-7-45

Discontinuance or settlement

Applied in 2 court decisions — leading case 140 N.C. App. 390 - Norman v. Nash Johnson & Sons' Farms, Inc. (2000)

Most recently applied in 220 N.C. App. 189 - T-Wol Acquisition Co. v. Ecdg South, LLC (May 2012)

1995, c. 149, s. 1.

(a) A derivative proceeding may not be discontinued or settled without the court's approval. If the court determines that a proposed discontinuance or settlement will substantially affect the interests of the corporation's shareholders or a class of shareholders, the court shall direct that notice be given to the shareholders affected.

(b) The court shall determine the manner and form of the notice and the manner in which costs of the notice shall be borne.

Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.