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Alabama · Through Act 2026-611

Ala. Code § 10A-2A-7.47: Proceeds and Expenses.

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Where this section sits in the code
  1. Title 10A Alabama Business and Nonprofit Entities Code.
  2. Chapter 2A Alabama Business Corporation Law.
  3. Article 7 Stockholders.
  4. Division D Derivative Proceedings.

(a) Except as otherwise provided in subsection (b):

(1) any proceeds or other benefits of a derivative action, whether by judgment, compromise, or settlement, belong to the corporation and not to the derivative plaintiff; and

(2) if the derivative plaintiff receives any proceeds, the derivative plaintiff shall immediately remit them to the corporation.

(b) If a derivative action is successful in whole or in part, the court may award the plaintiff reasonable expenses, including reasonable attorney’s fees, from the recovery of the corporation.

Collected 2026-09-03T14:01:53Z. Source file · JSON

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