{"id":10079,"date":"2018-05-09T11:55:42","date_gmt":"2018-05-09T18:55:42","guid":{"rendered":"https:\/\/www.keytlaw.com\/azllclaw\/?page_id=10079"},"modified":"2018-06-02T13:44:46","modified_gmt":"2018-06-02T20:44:46","slug":"ars-section-29-3806","status":"publish","type":"page","link":"https:\/\/www.keytlaw.com\/azllclaw\/ars-section-29-3806\/","title":{"rendered":"ARS Section 29-3806 Proceeds and Expenses; Voluntary Dismissal or Settlement"},"content":{"rendered":"

A. Except as otherwise provided in subsection B or D of this Section or Section 29-3807<\/a>, both of the following apply:<\/p>\n

1. any proceeds or other benefits of a derivative action, whether by judgment, compromise or settlement, belong to the limited liability company and not to the plaintiff.<\/p>\n

2. if the plaintiff receives any proceeds, the plaintiff shall remit them immediately to the company.<\/p>\n

B. If a derivative action is successful, in whole or in part, the court may award the plaintiff reasonable expenses, including reasonable attorney fees and costs, from the recovery of the limited liability company.<\/p>\n

C. If the court finds that the derivative action was brought without reasonable cause, the court may require the plaintiff to pay to the defendants the defendants’ reasonable expenses, including reasonable attorney fees and costs, incurred in the defense of the action.<\/p>\n

D. A derivative action on behalf of a limited liability company may not be voluntarily dismissed or settled without the court’s approval.<\/p>\n

Note<\/strong>:\u00a0 As of September 1, 2020, this statute applies to all Arizona LLCs .\u00a0 The text above shows the statute as of January 1, 2025.\u00a0 To see if the Arizona legislature modified this statute after January 1, 2025, go the the Arizona legislature's website for Title 29, Chapter 7<\/a>.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"

A. Except as otherwise provided in subsection B or D of this Section or Section 29-3807, both of the following apply: 1. any proceeds or other benefits of a derivative action, whether by judgment, compromise or settlement, belong to the limited liability company and not to the plaintiff. 2. if the plaintiff receives any proceeds, the plaintiff shall remit them immediately to the company. B. If a derivative action is successful, in whole or in part, the court may award the plaintiff reasonable expenses, including reasonable attorney fees and costs, from the recovery of the limited liability company. C. If the court finds that the derivative action was brought without reasonable cause, the court may require the plaintiff to pay to the defendants the defendants’ reasonable expenses, including reasonable attorney fees and costs, incurred in the defense of the action. D. A derivative action on behalf of a limited liability company may not be voluntarily dismissed or settled without the court’s approval.<\/p>\n","protected":false},"author":158,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"om_disable_all_campaigns":false,"footnotes":""},"class_list":["post-10079","page","type-page","status-publish","hentry"],"yoast_head":"\nARS Section 29-3806 Proceeds and Expenses; Voluntary Dismissal or Settlement - Arizona LLC Law<\/title>\n<meta name=\"description\" content=\"The complete text of Arizona Revised Statutes Section 29-3806 of Arizona's new LLC law that is effective September 1, 2019.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.keytlaw.com\/azllclaw\/ars-section-29-3806\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ARS Section 29-3806 Proceeds and Expenses; 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