Sec. 496.
A derivative proceeding may not be discontinued or settled without the court's approval. If the court determines that a proposed discontinuance or settlement will substantially affect the interests of the corporation's shareholders or a class of shareholders, the court shall direct that notice be given to the shareholders affected. If notice is directed to be given to the affected shareholders, the court may determine whether 1 or more of the parties to the action shall bear the expense of giving the notice, in the amount as the court determines and finds to be reasonable under the circumstances. The amount of expense shall be awarded as special costs of the action and recoverable in the same manner as statutory taxable costs.
History: Add. 1989, Act 121, Eff. Oct. 1, 1989 ;-- Am. 1993, Act 91, Eff. Oct. 1, 1993
Structure Michigan Compiled Laws
Act 284 of 1972 - Business Corporation Act (450.1101 - 450.2099)
284-1972-4 - Chapter 4 Shareholders (450.1401...450.1497)
Section 450.1401 - Meetings of Shareholders; Place.
Section 450.1402 - Annual Meeting of Shareholders.
Section 450.1403 - Special Meeting of Shareholders.
Section 450.1406 - Meeting of Shareholders; Duties of Chairperson.
Section 450.1406a - Electronic Transmission as Notice; Consent.
Section 450.1407 - Corporate Action Without Meeting, Notice, or Vote of Shareholders.
Section 450.1411 - Repealed. 1989, Act 121, Eff. Oct. 1, 1989.
Section 450.1412 - Fixing Record Dates for Certain Purposes.
Section 450.1413 - List of Shareholders Entitled to Vote.
Section 450.1415 - Shareholder Meeting; Quorum.
Section 450.1422 - Irrevocable Proxy.
Section 450.1423 - Revocable Proxy.
Section 450.1431 - Inspectors at Shareholders' Meetings.
Section 450.1432 - Procedure Recognizing Beneficial Owner of Shares as Shareholder.
Section 450.1441 - Voting by Shareholders.
Section 450.1442 - Voting as a Class or Series.
Section 450.1444 - Voting Shares Standing in Name of Another Corporation; Voting Pledged Shares.
Section 450.1445 - Voting Shares Held by Representatives or Fiduciaries.
Section 450.1446 - Voting by Joint Tenants or Tenants in Common.
Section 450.1447 - Repealed. 1989, Act 121, Eff. Oct. 1, 1989.
Section 450.1447a - Voting Shares Owned by Second Corporation.
Section 450.1448 - Voting of Redeemable Shares.
Section 450.1451 - Cumulative Voting.
Section 450.1455 - Articles Control Where Voting Requirements Exceed Those of Act.
Section 450.1461 - Voting Agreements Between Shareholders.
Section 450.1463 - Repealed. 1997, Act 118, Imd. Eff. Oct. 24, 1997.
Section 450.1466 - Voting Trust Agreement; Certificates.
Section 450.1468 - Extending Duration of Voting Trust Agreement.
Section 450.1471 - Shares as Personal Property; Shares Transferable.
Section 450.1481 - Repealed. 1989, Act 121, Eff. Oct. 1, 1989.
Section 450.1485 - Corporate Books, Records, and Minutes.
Section 450.1488 - Shareholder Agreement.
Section 450.1489 - Action by Shareholder.
Section 450.1491 - Repealed. 1989, Act 121, Eff. Oct. 1, 1989.
Section 450.1491a - Definitions.
Section 450.1492 - Repealed. 1989, Act 121, Eff. Oct. 1, 1989.
Section 450.1492a - Commencement of Derivative Proceeding by Shareholder; Criteria.
Section 450.1493 - Repealed. 1989, Act 121, Eff. Oct. 1, 1989.
Section 450.1493a - Commencement of Derivative Proceeding by Shareholder; Criteria.
Section 450.1494 - Stay of Derivative Proceeding; Condition.
Section 450.1495 - Dismissal of Derivative Proceeding; Determination.
Section 450.1497 - Termination of Derivative Proceeding; Order of Court.