Title 14, Chapter 3, Section 744
( 14-3-744)
(a) The court may dismiss a derivative proceeding if, on motion by
the corporation, 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 corporation. The corporation 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 independent directors present at a meeting
of the board of directors if the independent directors constitute
a quorum; (2) A majority vote of a committee consisting of two or more
independent directors appointed by a majority vote of independent
directors present at a meeting of the board of directors, whether
or not such independent directors constitute a quorum; or (3) A panel of one or more independent persons appointed by the
court upon motion by the corporation. (c) None of the following shall by itself cause a director to be
considered not independent for purposes of subsection (b) of this
Code section: (1) The nomination or election of the director by directors who
are not independent; (2) The naming of the director as a defendant in the derivative
proceeding; or (3) The fact that the director approved the action being
challenged in the derivative proceeding so long as the director
did not receive a personal benefit as a result of the action. |