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District of Columbia · Through 2026-08-20 (D.C. Law 26-175)

D.C. Code § 29-808.06: Proceeds and expenses.

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Where this section sits in the code
  1. Title 29. Business Organizations. [Enacted title]
  2. Chapter 8. Limited Liability Companies.
  3. Subchapter VIII. Actions by Members.

(a)

Except as otherwise provided in subsection (b) of this section:

(1)

Any proceeds or other benefits of a derivative action under § 29-808.02, whether by judgment, compromise, or settlement, belong to the limited liability company and not to the plaintiff; and

(2)

If the plaintiff receives any proceeds, the plaintiff shall remit them immediately to the company.

(b)

If a derivative action under § 29-808.02 is successful in whole or in part, the Superior Court may award the plaintiff reasonable expenses, including reasonable attorney’s fees and costs, from the recovery of the limited liability company.

(c)

A derivative action on behalf of a limited partnership may not be voluntarily dismissed or settled without the Superior Court’s approval.

Collected 2026-08-29T05:44:07Z. Source file · JSON

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