New Jersey § 14a:3-6
Full text of New Jersey New Jersey Statutes § 14a:3-6, with citation guidance and answers to common questions.
§ 14a:3-6.
In any derivative proceeding or shareholder class action instituted by a shareholder
or shareholders holding less than 5% of the outstanding shares of any class or series
of the corporation, unless the shares have a market value in excess of $250,000, the
corporation in whose right the action is brought shall be entitled at any time before
final judgment to require the plaintiff or plaintiffs 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. Market value shall be determined as of the date that the plaintiff institutes the
action or, in the case of an intervener, as of the date that the intervener becomes
a party to the action. The corporation shall have recourse to that security in that amount which the court
having jurisdiction shall determine upon the termination of the action in accordance
with section 7 of P.L.2013, c. 42 ( C.14A:3-6.7 ).
Frequently Asked Questions About New Jersey § 14a:3-6
What does New Jersey Statutes § 14a:3-6 cover?
Section 14a:3-6 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 § 14a:3-6?
A common citation format is "New Jersey Statutes § 14a:3-6" (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 § 14a:3-6 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.