New Jersey § 15a:3-5
Full text of New Jersey New Jersey Statutes § 15a:3-5, with citation guidance and answers to common questions.
§ 15a:3-5.
a. No action shall be brought in this State by a member in the right of a domestic
or foreign corporation unless the plaintiff was a member at the time of the transaction
of which the plaintiff complains. b. In any action hereafter instituted in the right of the corporation by a member,
the court having jurisdiction, upon final judgment and a finding that the action was
brought without reasonable cause, may require the plaintiff to pay to the parties
named as defendant the reasonable expenses, including fees of attorneys, incurred
by them in the defense of the action. c. In any action now pending or hereafter instituted or maintained in the right of
the corporation by less than 5% of the members or any class of members, the corporation
in whose right the action is brought shall be entitled at any time before final judgment
to require the plaintiff to give security for the reasonable expenses, including fees
of attorneys, that may be incurred by it in connection with the action or may be incurred
by other parties named as defendant for which it may become legally liable. The amount of the security may from time to time be increased or decreased, in the
discretion of the court, upon showing that the security provided has or may become
inadequate or excessive. The corporation shall have recourse to the security in an amount as the court having
jurisdiction shall determine upon the termination of the action. d. This section shall not impair, restrict, or impose a condition on any right of
a trustee of a corporation with or without members, to bring an action in this State
in the right of a domestic or foreign corporation.
Frequently Asked Questions About New Jersey § 15a:3-5
What does New Jersey Statutes § 15a:3-5 cover?
Section 15a:3-5 is part of the New Jersey Statutes, the codified statutory law of New Jersey. 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 New Jersey § 15a:3-5?
A common citation format is "New Jersey Statutes § 15a:3-5" (New Jersey). 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 New Jersey law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Jersey official source linked on this page or consult a licensed New Jersey attorney.
How does New Jersey § 15a:3-5 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Jersey 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 New Jersey.