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  1. #1
    Join Date
    May 2014
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    23

    Default When Can a Corporation Pay a Shareholder's Expenses for a Derivative Action

    My question involves business law in the state of: Maryland

    Under Maryland corporate law, where one or more shareholders bring a derivative action, under what circumstances, if any, is the corporation either required or permitted to pay the shareholder’s legal expenses incurred in the derivative action? I can't seem to find the applicable statute for general corporations; I only found section 4A-801, which pertains to limited liability companies.

  2. #2
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: When Can a Corporation Pay a Shareholder's Expenses for a Derivative Action

    Quote Quoting sandiego3336
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    My question involves business law in the state of: Maryland

    Under Maryland corporate law, where one or more shareholders bring a derivative action, under what circumstances, if any, is the corporation either required or permitted to pay the shareholder’s legal expenses incurred in the derivative action? I can't seem to find the applicable statute for general corporations; I only found section 4A-801, which pertains to limited liability companies.
    Your question is too broad/vague. Either provide some specifics or consult a local attorney who you can be more free with the details. The very nature of a derivative action means that its often hostile against the corporation and/or the corporation management, so the details of the situation are quite critical.

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