Nevada § 88A.410 - Derivative actions: Authority of beneficial owner to bring action; qualifications of plaintiff; pleading; expenses

§ 88A.410. Derivative actions: Authority of beneficial owner to bring action; qualifications of plaintiff; pleading; expenses

1. A beneficial owner may maintain an action in the right of a business trust to recover

a judgment in its favor if trustees having authority to do so have refused to bring

the action or if an effort to cause those trustees to bring the action is unlikely

to succeed. 2. In a derivative action, the plaintiff must be a beneficial owner at the time of

bringing the action and: (a) The plaintiff must have been a beneficial owner at the time of the transaction

of which the plaintiff complains; or (b) The plaintiff’s status as a beneficial owner must have devolved upon the plaintiff

by operation of law or pursuant to a provision of the certificate of trust or the

governing instrument from a person who was a beneficial owner at the time of the transaction. 3. In a derivative action, the complaint must state with particularity the effort,

if any, of the plaintiff to cause the trustees to bring the act, or the reasons for

not making the effort. 4. If a derivative action is successful, in whole or in part, or if anything is received

by the business trust through judgment or settlement of the action, the court may

award the plaintiff reasonable expenses, including attorney's fees. If the plaintiff receives any proceeds of judgment or settlement, the court shall

make the award of the plaintiff’s expenses payable from those proceeds and remit the

remainder to the business trust. If the proceeds received by the plaintiff are less than the expenses awarded, the

court may direct all or part of the remainder of the award to be paid by the business

trust. 5. A beneficial owner's right to bring a derivative action may be subject to additional

standards and restrictions set forth in the governing instrument, including, without

limitation, a requirement that beneficial owners of a specified beneficial interest

join in the action.