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S.D. Codified Laws § 47-1A-741

Standing

Known as the South Dakota Business Corporation Act

The act spans §§ 47–47 (383 sections).

Source: SL 2005, ch 239, § 124.

No shareholder may 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.

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