Code of Alabama
Ala. Code § 10A-2A-7.40 (2026)
Division Definitions.
✓ official Alabama Legislature (ALISON) text, current July 2026
In this division:
(1) COURT means the designated court, and if none, the circuit court for the county in which the corporation’s principal office is located in this state, and if none in this state, the circuit court for the county in which the corporation’s most recent registered office is located.
(2) DERIVATIVE ACTION means a civil suit in the right of a corporation or, to the extent provided in Section 10A-2A-7.48, in the right of a foreign corporation.
(3) STOCKHOLDER means a record stockholder, a beneficial stockholder, and an unrestricted voting trust beneficial owner.
(Act 2019-94, §1; Act 2020-73, §7; Act 2025-281, §2.)
Notes of Decisions
Cited in 3
cases (3 in the last 5 years), 2025–2026 · leading case: Berry v. Bailey (N.D. Ala. 2025).
Berry v. Bailey (N.D. Ala. 2025). “” Ala. Code § 10A-2A-7.40(3). Building on that definition, § 10A-2A- 1.”
Tara Grall v. William Grall & G-Team, P.C. (Ala. 2026). “In March 2024, during the pendency of the Grall's divorce proceedings and after G-Team had permanently ceased doing business, William commenced a derivative action against Tara under § 10A-2A-7.40 et seq., Ala. Code 1975, seeking to enforce the purported right of G-Team to sell…”
Tara Grall v. William Grall & G-Team, P.C. (Ala. 2026). “In March 2024, during the pendency of the Grall's divorce proceedings and after G-Team had permanently ceased doing business, William commenced a derivative action against Tara under § 10A-2A-7.40 et seq., Ala. Code 1975, seeking to enforce the purported right of G-Team to sell…”
— Ala. Code § 10A-2A-7.40(3) — 1 case
Berry v. Bailey (N.D. Ala. 2025). “” Ala. Code § 10A-2A-7.40(3). Building on that definition, § 10A-2A- 1.”
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