Michigan § 450.2492a - Derivate proceeding; criteria to be met by shareholder or member.
Full text of Michigan Michigan Compiled Laws § 450.2492a — Derivate proceeding; criteria to be met by shareholder or member., with citation guidance and answers to common questions.
§ 450.2492a. Derivate proceeding; criteria to be met by shareholder or member.
A shareholder or member may not commence or maintain a derivative proceeding unless the shareholder or member meets all of the following criteria:
(a) The shareholder or member was a shareholder or member of the corporation at the time of the act or omission complained of or became a shareholder or member through a permitted transfer by operation of law from a person that was a shareholder or member at that time.
(b) The shareholder or member fairly and adequately represents the interests of the corporation in enforcing the right of the corporation.
(c) The shareholder or member continues to be a shareholder or member until the time of judgment, unless the failure to continue to be a shareholder or member is the result of corporate action in which the former shareholder or member did not acquiesce and the derivative proceeding was commenced before the termination of the former shareholder's or member's status as a shareholder or member.
Source: official Michigan text · Last verified 2026-08-27
Frequently Asked Questions About Michigan § 450.2492a
What does Michigan Compiled Laws § 450.2492a cover?
Section 450.2492a ("Derivate proceeding; criteria to be met by shareholder or member.") is part of the Michigan Compiled Laws, the codified statutory law of Michigan. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Michigan § 450.2492a?
A common citation format is "Michigan Compiled Laws § 450.2492a" (Michigan). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Michigan law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Michigan official source linked on this page or consult a licensed Michigan attorney.
How does Michigan § 450.2492a apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Michigan can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Michigan.