O.C.G.A.

O.C.G.A. § 14-11-805 (2019)

Dismissal

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)
Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.
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(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

CORPORATIONS & PARTNERSHIPS 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.

History

(Code 1981, § 14-11-805, enacted by Ga. L. 1993, p. 123, § 1.)

Annotations

RESEARCH REFERENCES ALR. - Construction and application of limited liability company acts - issues relating to derivative actions and actions

between members of limited liability company, 48 ALR6th 1.

Notes of Decisions
Cited in 2 cases (1 in the last 5 years), 2012–2024 · leading case: Huiming Song v. Egps Solutions I, Inc. (Ga. Ct. App. 2024).
Huiming Song v. Egps Solutions I, Inc. (Ga. Ct. App. 2024). · cites it 10× “10 OCGA § 14-11-805 (a). One such group, which is at issue here, is established by “[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,…”
Young v. Bush, 277 P.3d 916 (Colo. Ct. App. 2012). · cites it 3× “, Ga.Code Ann. § 14-11-805 (2011); Fla. Stat.”
— 14-11-805(a) — 1 case
Young v. Bush, 277 P.3d 916 (Colo. Ct. App. 2012). “, Ga.Code Ann. § 14-11-805 (2011); Fla. Stat.”
— 14-11-805(c) — 1 case
Young v. Bush, 277 P.3d 916 (Colo. Ct. App. 2012). “, Ga.Code Ann. § 14-11-805 (2011); Fla. Stat.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.