Rhode Island § 7-16-58 - The Rhode Island Limited Liability Company Act
Full text of Rhode Island Rhode Island General Laws § 7-16-58 — The Rhode Island Limited Liability Company Act, with citation guidance and answers to common questions.
§ 7-16-58. The Rhode Island Limited Liability Company Act
R.I. Gen. Laws § 7-16-58
§ 7-16-58. Expenses in derivative action.
(a) If a derivative action is successful, in whole or in part, or if anything is received by the plaintiff as a result of a judgment, compromise or settlement of an action or claim, the court may award the plaintiff reasonable expenses, including legal fees, and shall direct him or her to remit to the limited liability company the remainder of those proceeds received by him or her.
(b) In any action subsequently instituted on behalf of any limited liability company by a member or members of the company, the court having jurisdiction, upon final judgment and a finding that the action was brought without reasonable cause, may require the plaintiff or plaintiffs to pay to the parties named as defendants the reasonable expenses, including legal fees, incurred by them in the defense of the action.
History of Section.
P.L. 1992, ch. 280, § 1.
Source: official Rhode Island text · Last verified 2026-08-27
Frequently Asked Questions About Rhode Island § 7-16-58
What does Rhode Island General Laws § 7-16-58 cover?
Section 7-16-58 ("The Rhode Island Limited Liability Company Act") is part of the Rhode Island General Laws, the codified statutory law of Rhode Island. 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 Rhode Island § 7-16-58?
A common citation format is "Rhode Island General Laws § 7-16-58" (Rhode Island). 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 Rhode Island law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Rhode Island official source linked on this page or consult a licensed Rhode Island attorney.
How does Rhode Island § 7-16-58 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Rhode Island 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 Rhode Island.