N.C. Gen. Stat. » Chapter 55
NC General Statutes

N.C. Gen. Stat. § 55-7-40.1 (2026)

Definitions

✓ current as of July 2026
Find cases: SyfertCases citing this section NCLEGncleg.gov (official) JustiaChapter 55 CornellLII Search CasesGoogle Scholar

In this Part:

(1) "Derivative proceeding" means a civil suit in the right of a domestic corporation or, to the extent provided in G.S. 55-7-47, in the right of a foreign corporation, to recover for an injury to the corporation.

(2) "Shareholder" has the same meaning as in G.S. 55-1-40 and includes a beneficial owner whose shares are held in a voting trust or held by a nominee on the beneficial owner's behalf.  (1995, c. 149, s. 1; 2025-33, s. 5(a).)

 

Notes of Decisions
Cited in 9 cases (2 in the last 5 years), 2000–2025 · leading case: Corwin as Tr. for Beatrice Corwin Living Irrevocable Trust v. British Am. Tobacco PLC, 821 S.E.2d 729 (N.C. 2018).
Sort: Relevance Newest Treatment
Corwin as Tr. for Beatrice Corwin Living Irrevocable Trust v. British Am. Tobacco PLC, 821 S.E.2d 729 (N.C. 2018). · cites it 6× “” N.C.G.S. § 55-7-40.1 (2017). Before commencing a derivative proceeding, a stockholder must make a written demand “upon the corporation to take suitable action.”
Aubin v. Susi, 560 S.E.2d 875 (N.C. Ct. App. 2002). · cites it 4× “As a general rule, "shareholders have no right to bring actions `in their [individual] name[s] to enforce causes of action accruing to the corporation[,]'" but they "must assert such claims derivatively on behalf of the corporation.”
Norman v. Nash Johnson & Sons' Farms, Inc., 537 S.E.2d 248 (N.C. Ct. App. 2000). · cites it 4× “A "derivative proceeding" is a civil action brought by a shareholder "in the right of" a corporation, N.C. Gen.Stat. § 55-7-40.1 (1999), while an individual action is one a shareholder brings to enforce a right which belongs to him personally.”
Burgess v. Burgess, 698 S.E.2d 666 (N.C. Ct. App. 2010). · cites it 4× “N.C. Gen. Stat. § 55-7-40.1 (1) (2009). As part of this cause of action, plaintiff is entitled to relief that she is barred from seeking in the equitable distribution action: a jury trial.”
Ellison v. Alexander, 700 S.E.2d 102 (N.C. Ct. App. 2010). · cites it 2× “Plaintiffs’ claims of corporate malfeasance were not addressed during the trial court’s consideration of Defendant’s motion.”
Fisher v. Flue-Cured Tobacco Coop. Stabilization Corp., 794 S.E.2d 699 (N.C. 2016). “§ 55-7-40.1(1) (2015). Derivative claims belong to the corporation itself, rather than to the plaintiffs, meaning that the rights to be vindicated are those of the corporation, not those of plaintiffs suing derivatively on the corporation’s behalf.”
Fred Smith Co. v. Smith, 2025 NCBC 70 (N.C. Bus. Ct. 2025). · cites it 3× “N.C.G.S. § 55-7-40.1(1). As part of this cause of action, [the wife] is entitled to relief that she is barred from seeking in the equitable distribution action: a jury trial.”
Duffy v. Camp (N.C. Ct. App. 2022). “§ 55-7-40.1 . “It is not always easy to distinguish between a right of the corporation and a right belonging to an individual shareholder.”
Thomas v. Mcmahon, 2015 NCBC 64 (N.C. Bus. Ct. 2015). · cites it 2× “McMahon thereby waived his right to a trial by jury. {5} Plaintiffs tendered Exhibits 1–11 at trial, which the Court admits into evidence for purposes of this bench trial.”
— N.C. Gen. Stat. § 55-7-40.1(1) — 3 cases
Burgess v. Burgess, 698 S.E.2d 666 (N.C. Ct. App. 2010). “N.C. Gen. Stat. § 55-7-40.1 (1) (2009). As part of this cause of action, plaintiff is entitled to relief that she is barred from seeking in the equitable distribution action: a jury trial.”
Fisher v. Flue-Cured Tobacco Coop. Stabilization Corp., 794 S.E.2d 699 (N.C. 2016). “§ 55-7-40.1(1) (2015). Derivative claims belong to the corporation itself, rather than to the plaintiffs, meaning that the rights to be vindicated are those of the corporation, not those of plaintiffs suing derivatively on the corporation’s behalf.”
Fred Smith Co. v. Smith, 2025 NCBC 70 (N.C. Bus. Ct. 2025). “N.C.G.S. § 55-7-40.1(1). As part of this cause of action, [the wife] is entitled to relief that she is barred from seeking in the equitable distribution action: a jury trial.”
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.