No derivative proceeding may 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 affected members.

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Terms Used In Arizona Laws 10-3635

  • Class: refers to a group of memberships that have the same rights with respect to voting, dissolution, redemption and transfer. See Arizona Laws 10-3140
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Court: means the superior court of this state. See Arizona Laws 10-140
  • Proceeding: includes a civil suit and a criminal, administrative and investigatory action. See Arizona Laws 10-140
  • 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.