Article 40 - Derivative Actions - Illinois Statutes

      (805 ILCS 180/Art. 40 heading)Article 40. Derivative Actions

(805 ILCS 180/40‑1)     Sec. 40‑1. Right of action. No action shall be brought by a member, or transferee who is entitled to exercise the rights of a member to bring an action, in the right of a limited liability company to recover a judgment in its favor unless members or managers with authority to do so have refused to bring the action or unless an effort to cause those members or managers to bring the action is not likely to succeed. (Source: P.A. 90‑424, eff. 1‑1‑98.)

(805 ILCS 180/40‑5)     Sec. 40‑5. Proper plaintiff. No action shall be brought in the right of a limited liability company by a member or transferee who is a substituted member, unless (i) the plaintiff was a member or is a transferee who was a substituted member at the time of the transaction of which the person complains or (ii) the person's status as a member or a transferee who is a substituted member had devolved upon him or her by operation of law or under the terms of the operating agreement from a person who was a member or a transferee who was a substituted member at the time of the transaction. (Source: P.A. 90‑424, eff. 1‑1‑98.)

(805 ILCS 180/40‑10)     Sec. 40‑10. Pleading. In a derivative action, the complaint shall set forth with particularity the effort of the plaintiff to secure initiation of the action by the limited liability company or the reasons for not making the effort. (Source: P.A. 87‑1062.)

(805 ILCS 180/40‑15)     Sec. 40‑15. Expenses. If a derivative action is successful, in whole or in part, or if anything is received by the plaintiff as a result of a judgment, compromise, or settlement of an action or claim, the court may award the plaintiff reasonable expenses, including reasonable attorney's fees, and shall direct the plaintiff to remit to the limited liability company the remainder of those proceeds received by the plaintiff. (Source: P.A. 87‑1062.)