A partner may commence or maintain a derivative action in the right of the limited partnership only if the partner:
(1) fairly and adequately represents the interests of the limited partnership in enforcing the right of the limited partnership; and
(2) either:
(A) was a partner of the limited partnership at the time of the act or omission of which the partner complains; or
(B) whose status as a partner devolved upon the person by operation of law or pursuant to the terms of the partnership agreement from a person who was a partner at the time of the act or omission of which the partner complains.
Structure Code of Alabama
Title 10A - Alabama Business and Nonprofit Entities Code.
Chapter 9A - Alabama Limited Partnership Law.
Article 9 - Actions by Partners.
Section 10A-9A-9.01 - Direct Action by Partner.
Section 10A-9A-9.02 - Right of Derivative Action.
Section 10A-9A-9.03 - Standing.
Section 10A-9A-9.05 - Pleading.
Section 10A-9A-9.06 - Stay of Proceedings.
Section 10A-9A-9.07 - Discontinuance or Settlement.
Section 10A-9A-9.08 - Proceeds and Expenses.
Section 10A-9A-9.09 - Applicability to Foreign Limited Partnerships.