Del. C. » Title 6 — SUBTITLE II · Commerce and Trade · Subchapter X. Derivative Actions
Delaware Code

6 Del. C. § 18-1003 (2026)

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In a derivative action, the complaint shall set forth with particularity the effort, if any, of the plaintiff to secure initiation of the action by a manager or member or the reasons for not making the effort.

68 Del. Laws, c. 434, §  1; 
Notes of Decisions
Cited in 9 cases (4 in the last 5 years), 2016–2025 · leading case: Obeid v. Hogan, No. 11900-VCL, 2016 WL 3356851 (Del. Ch. June 10, 2016).
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Obeid v. Hogan, No. 11900-VCL, 2016 WL 3356851 (Del. Ch. June 10, 2016). “” 6 Del. C. § 18-1003. The language of Section 18-1001 implies, consistent with Zapata, that in a member-managed LLC, decisions regarding a derivative action must be made by the “members with authority to do so,” and in a manager-managed LLC, by “managers .”
Aleksander Dietrichson v. Martin G. Knott & NxGenEd, LLC, No. 11965-VCMR, 2017 WL 1400552 (Del. Ch. Apr. 19, 2017). “Dietrichson’s Claims Seeking a Distribution Are Unripe Dietrichson also asserts that Knott breached the Operating Agreement, the Deal Terms, and the implied covenant of good faith and fair dealing by purportedly depriving Dietrichson of guaranteed distributions.”
Mke Holdings Ltd. v. Kevin Schwartz, No. 2018-0729-SG (Del. Ch. Sept. 26, 2019). “152 6 Del. C. § 18-1003. 22 seven current Managers are either directors or executives of Paine; two former Managers of Verdesian are or were directors or executives of Paine.”
In re Morrow Park Holding LLC, Cons. C.A. No. 2017-0036-PAF, 2022 WL 3025780 (Del. Ch. Aug. 1, 2022). “Because this claim is derivative and the Holtzman Parties do not contend that they have met the pleading standards for a derivative claim, see 6 Del. C. § 18-1003, the Holtzman Parties have not met their burden.”
In re Morrow Park Holding LLC, No. 2017-0036-PAF (Del. Ch. Aug. 16, 2022). “Because this claim is derivative and the Holtzman Parties do not contend that they have met the pleading standards for a derivative claim, see 6 Del. C. § 18-1003, the Holtzman Parties have not met their burden.”
Thomas Nieto v. CCG MSJC, LLC, No. 2:24-cv-00818 (E.D. La. May 16, 2024). “See 6 Del. Code § 18-1003 (“In a derivative action, the complaint shall set forth with particularity the effort, if any, of the plaintiff to secure initiation of any action by a manager or member or the reasons for not making the effort.”
Schiff v. ZM Equity Partners, LLC, No. 1:19-cv-04735, 2020 WL 5077712 (S.D.N.Y. Aug. 27, 2020). “See 6 Del. C. § 18-1003; Dietrichson, 2017 WL 1400552 , at *5.”
Kimberly Hutcherson v. Villas at Bay Crossing, No. 2024-0340-BWD (Del. Ch. Jan. 8, 2025). “§ 17-1003; then citing 6 Del. C. § 18-1003; and then citing 12 Del.”
Kane v. Moore, 2018 NCBC 120 (N.C. Bus. Ct. 2018). “The Demand Letter is titled “Re: Mismanagement of Lookout Capital, LLC[,] Demand for Corrective Action Under 6 Del. C. § 18-1003 and Ct. Ch. R. 23.1[.”
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