Ala. Code § 10A-2A-7.47: Proceeds and Expenses.
Where this section sits in the code
- Title 10A Alabama Business and Nonprofit Entities Code.
- Chapter 2A Alabama Business Corporation Law.
- Article 7 Stockholders.
- 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