35-2-1305. Discontinuance or settlementnotice. A derivative proceeding may not be discontinued or settled without the court’s approval. If the court determines that a proposed discontinuance or settlement will substantially affect the interests of the corporation‘s members or a class of members, the court shall direct that notice be given to the members affected.

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Terms Used In Montana Code 35-2-1305

  • Class: refers to a group of memberships that have the same rights with respect to voting, dissolution, redemption, and transfer. See Montana Code 35-2-114
  • Notice: means that term as described in 35-2-115. See Montana Code 35-2-114
  • Proceeding: includes a civil suit and a criminal, administrative, and investigatory action. See Montana Code 35-2-114
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.