A derivative proceeding shall be dismissed by the court on motion by the corporation if one of the groups specified in §§ 47-1A-744.1 or 47-1A-744.5 has determined in good faith after conducting a reasonable inquiry upon which its conclusions are based that the maintenance of the derivative proceeding is not in the best interests of the corporation.
S.D. Codified Laws § 47-1A-744
Dismissal upon determination that maintenance of proceeding not in best interests of corporation
Known as the South Dakota Business Corporation Act
The act spans §§ 47–47 (383 sections).
Source: SL 2005, ch 239, § 127.
Official source: South Dakota Legislature. Reproduced from public-domain South Dakota statutes; confirm against the official source for the current text. Not legal advice.