48-2c-1701 - Right of action. - Utah Statutes

48-2c-1701. Right of action.
A member may bring an action in the right of a company to recover a judgment in itsfavor:
(1) if the managers or, if no managers, the members with authority to do so have refusedto bring the action and the decision of the managers or members not to sue constitutes an abuse ofdiscretion or involves a conflict of interest that prevents an unbiased exercise of judgment; or
(2) if an effort to cause those managers or members to bring the action is not likely tosucceed.

Enacted by Chapter 260, 2001 General Session