N.C. Gen. Stat. § 57D-8-01 Member Derivative Actions

• Library: North Carolina Statutes
• Edition: 2023
• Currency: Current through Session Law 2023-151
• Year: 2023
• Citation: N.C. Gen. Stat. § 57D-8-01

(a) Subject to the provisions of G.S. 57D-8-02 and G.S. 57D-8-03, a member may bring a derivative action if the following conditions are met:

(1) Either (i) the member was a member of the LLC at the time of the act or omission for which the proceeding is brought or (ii) all or any portion of the member's ownership interest devolves by operation of law from an ownership interest that was owned by a member at that time.

(2) The member made written demand on the LLC to take suitable action, and either (i) the LLC notified the member that the member's demand was rejected, (ii) 90 days have expired from the date the demand was made, or (iii) irreparable injury to the LLC would result by waiting for the expiration of the 90-day period.