Virginia Code 13.1-672.2: Discontinuance or settlement.
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A. A derivative proceeding may not be settled or discontinued without the court’s approval. If the court determines that a proposed discontinuance or settlement will substantially and adversely affect the interests of the corporation‘s shareholders or a class or series of the corporation’s shareholders, the court shall direct that notice be given to the shareholders affected.
Terms Used In Virginia Code 13.1-672.2
- 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.
- Proceeding: includes civil suit and criminal, administrative, and investigatory action. See Virginia Code 13.1-603
- 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.
B. Notice required by subsection A shall be given in such manner as the court shall determine, and the costs of such notice shall be borne in such manner as the court shall direct.
1992, c. 802; 2019, c. 734.