A member may maintain a derivative action to enforce a right of a limited liability company if:

(1) The member first makes a demand on the other members in a member-managed limited liability company, or the managers of a manager-managed limited liability company, requesting that they cause the company to bring an action to enforce the right, and the managers or other members do not bring the action within a reasonable time; or

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Terms Used In South Dakota Codified Laws 47-34A-1102

  • Member: means a person that:

    (A) Prior to formation of the limited liability company, becomes a member as agreed by that person and the organizer of the limited liability company. See South Dakota Codified Laws 47-34A-101

(2) A demand under paragraph (1) would be futile.

Source: SL 1998, ch 272, § 1102; SL 2013, ch 233, § 40.