Title 14, Chapter 11, Section 805
( 14-11-805)
(a) The court may dismiss a derivative proceeding if, on motion by
the limited liability company, the court finds that one of the
groups specified in subsection (b) of this Code section has made a
determination in good faith after conducting a reasonable
investigation upon which its conclusions are based that the
maintenance of the derivative suit is not in the best interests of
the limited liability company. The limited liability company shall
have the burden of proving the independence and good faith of the
group making the determination and the reasonableness of the
investigation. (b) The determination in subsection (a) of this Code section shall
be made by: (1) A majority vote of the independent managers or members present
at a meeting of managers or members, as the case may be, if the
independent managers or members constitute a quorum; (2) A majority vote of a committee consisting of two or more
independent managers or members appointed by a majority of
independent managers or members present at a meeting of managers
or members, as the case may be, whether or not such independent
managers or members constitute a quorum; or (3) A panel of one or more independent persons appointed by the
court upon motion of the limited liability company. (c) None of the following shall by itself cause a manager or member
to be considered not independent for purposes of subsection (b) of
this Code section: (1) The nomination or election of the manager or member by
managers or members who are not independent; (2) The naming of the manager or member as a defendant in the
derivative proceeding; or (3) The fact that the manager or member approved the action being
challenged in the derivative proceeding so long as the manager or
member did not receive a personal benefit as a result of the
action. |