(a) Alleges in the complaint that the member or shareholder was a member or shareholder of record when any part of the transaction of which complained took place, or that the membership or stock thereafter devolved upon the member or shareholder by operation of law from a member or shareholder at such time.
(b) Alleges in the complaint with particularity the efforts of the member or shareholder to secure from the board such action as desired. The member or shareholder shall further allege that the member or shareholder has either informed the cooperative or board in writing of the ultimate facts of each cause of action against each director or delivered to the cooperative or board a copy of the complaint proposed to be filed. The member or shareholder shall state the reasons for failure to obtain such action or the reasons for not making such effort.
(c) Files a complaint in such action within 20 days after notification given to the cooperative or board as provided by paragraph (b) of this subsection.
(2) The action shall not be dismissed or compromised without the approval of the court.
(3) If anything is recovered or obtained as the result of the action, whether by means of a compromise and settlement or by a judgment, the court may direct the plaintiff to account to the cooperative for the remainder of the proceeds.
(4) In an action brought in the right of a cooperative by fewer than three percent of the members or by holders of less than three percent of any class of stock outstanding, the defendants may require the plaintiff to give security for the reasonable expenses of defending the action, including attorney fees. The amount of the security may thereafter be increased or decreased in the discretion of the court upon showing that the security provided is or may be inadequate or is excessive.
(5) The court may award reasonable attorney fees to the prevailing party in an action under this section. [1957 c.716 §69; 1981 c.897 §15; 1995 c.618 §38]
Structure 2021 Oregon Revised Statutes
Volume : 02 - Business Organizations, Commercial Code
Section 62.025 - Filing requirements.
Section 62.035 - Effective time and date of document.
Section 62.040 - Correcting filed document.
Section 62.050 - Filing duty of Secretary of State.
Section 62.060 - Evidentiary effect of copy of filed document.
Section 62.065 - Certificate of existence.
Section 62.125 - General powers.
Section 62.128 - Reserved name.
Section 62.131 - Cooperative name.
Section 62.155 - Registered office and registered agent; service of process on cooperative.
Section 62.165 - Actions in excess of authority.
Section 62.175 - Capital stock; membership stock.
Section 62.185 - Certificates of stock; contents.
Section 62.195 - Voting by shareholders.
Section 62.205 - Subscription agreement for shares or agreement to pay a membership fee; default.
Section 62.235 - Recall, exchange or redemption of stock or other evidence of equity by cooperative.
Section 62.251 - Notice to directors, members and shareholders.
Section 62.255 - Meetings of members.
Section 62.265 - Voting by members.
Section 62.275 - Quorum of members.
Section 62.280 - Board of directors.
Section 62.284 - Director conflict of interest.
Section 62.285 - Meetings of board of directors.
Section 62.286 - Loans to or guarantees for directors.
Section 62.290 - Executive committee.
Section 62.300 - Compensation and benefits to directors, officers and employees.
Section 62.335 - Action brought in right of cooperative by member or shareholder; attorney fees.
Section 62.355 - Cooperative contracts.
Section 62.360 - Recording cooperative contracts.
Section 62.365 - Relief against breach or threatened breach of contract; penalty for interference.
Section 62.415 - Apportionment and distribution of net proceeds or savings or net losses.
Section 62.425 - Unclaimed distribution, redemptions or payments.
Section 62.430 - Payments in name of deceased owner of capital credits or retains in cooperative.
Section 62.435 - Sale or other disposition of entire assets.
Section 62.440 - Books and records; attorney fees.
Section 62.455 - Annual report; form; effect of error; update of information.
Section 62.462 - Definitions for ORS 62.462 to 62.482.
Section 62.464 - Authority to indemnify director; report to members.
Section 62.468 - Advance for expenses.
Section 62.472 - Court-ordered indemnification.
Section 62.474 - Determination and authorization of indemnification.
Section 62.476 - Indemnification of officers, employees and agents.
Section 62.482 - Application of ORS 62.462 to 62.482.
Section 62.513 - Contents of articles of incorporation; rules.
Section 62.555 - Right to amend articles of incorporation.
Section 62.560 - Shareholder voting on amendments to articles.
Section 62.565 - Articles of amendment; effect of amendment.
Section 62.570 - Restated articles.
Section 62.605 - Definitions for ORS 62.605 to 62.623.
Section 62.609 - Action on plan of conversion.
Section 62.611 - Articles and plan of conversion.
Section 62.613 - Effect of conversion; entity existence continues.
Section 62.617 - Merger; plan of merger.
Section 62.619 - Action on plan of merger.
Section 62.621 - Articles and plan of merger.
Section 62.623 - Effect of merger.
Section 62.655 - Voluntary dissolution by act of cooperative.
Section 62.665 - Procedure for dissolution.
Section 62.680 - Articles of dissolution.
Section 62.702 - Procedure for dissolution of cooperative by court.
Section 62.704 - Judgment of dissolution issued by court.
Section 62.708 - Effect of dissolution.
Section 62.712 - Disposition of known claims against dissolved cooperative.
Section 62.714 - Notice of dissolution; presentation of claims against cooperative.
Section 62.720 - Presumption of abandonment; procedure for agriculture cooperatives and others.
Section 62.765 - Definitions for ORS 62.765 to 62.792.
Section 62.768 - Election to be governed as employee cooperative; corporate name.
Section 62.774 - Qualifications of members; membership shares; rights of members.
Section 62.777 - Membership powers.
Section 62.780 - Apportionment of net earnings or losses.
Section 62.783 - Internal capital accounts; redemption of shares; collective reserve account.
Section 62.786 - Internal capital account cooperative.
Section 62.789 - Procedure for revocation of election; limits on merger.
Section 62.800 - Short title; purpose; resolution of conflicts.
Section 62.803 - Definitions for ORS 62.800 to 62.815.
Section 62.806 - Election as nonprofit cooperative.
Section 62.812 - Distribution of cooperative assets upon dissolution.
Section 62.815 - Prohibited actions.