resources / Statutes / Nonprofit Corporations / §10-3635

Title 10 – Corporations and Associations

Chapter 29 – Members and Membership-nonprofit Corporations

Article 4 – Derivative Suits

  • No derivative proceeding may 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 members or a class of members, the court shall direct that notice be given to the affected members.