Nebraska Revised Statutes

Neb. Rev. Stat. § 21-165 (2026)

Derivative action

✓ current as of July 2026
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(RULLCA 902) A member may maintain a derivative action to enforce a right of a limited liability company if:

(1) the member first makes a demand on the other members in a member-managed limited liability company, or the managers of a manager-managed limited liability company, requesting that they cause the company to bring an action to enforce the right, and the managers or other members do not bring the action within a reasonable time; or

(2) a demand under subdivision (1) of this section would be futile.

Notes of Decisions
Cited in 5 cases (3 in the last 5 years), 2013–2025 · leading case: Klingelhoefer v. Parker, Grossart, 834 N.W.2d 249 (Neb. Ct. App. 2013).
Klingelhoefer v. Parker, Grossart, 834 N.W.2d 249 (Neb. Ct. App. 2013). · cites it 5× “A member of a limited liability company bringing a derivative action must set forth in the complaint what actions were taken to comply with Neb. Rev. Stat. § 21-165 (Reissue 2012). Decisions of the Nebraska Court of Appeals 826 20 NEBRASKA APPELLATE REPORTS 5.”
Streck, Inc. v. Ryan Fam., 297 Neb. 773 (Neb. 2017). · cites it 2× “28 Such a cause of action is in the cor- poration and not the shareholders.29 The right of a shareholder to sue is derivative in nature and normally can be brought only in a representative capacity for the corporation.”
Mathiesen v. Kellogg, 315 Neb. 840 (Neb. 2024). · cites it 2× “Kellogg set forth that she was bringing the action as a derivative suit pursuant to Neb. Rev. Stat. § 21-165 (Reissue 2022). The complaint described the formation of Apostle in 2017 for the purpose of providing home nursing care services and claimed that Kellogg and Mathiesen…”
Tegra Corp. v. Boeshart, 976 N.W.2d 165 (Neb. 2022). “It is a proceeding in a court by which a party prosecutes another for enforce- ment, protection, or determination of a right or the redress or prevention of a wrong involving and requiring the pleadings, process, and procedure provided by the statute and ending in a final…”
Kellogg v. Mathiesen, 320 Neb. 223 (Neb. 2025). · cites it 2× “Kellogg stated that she was autho- rized under § 21-165 to file a derivative suit on Apostle’s behalf.”
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