New York Laws
Title 6 - Stockholders
6026 - Security for Expenses in Stockholders' Derivative Action Brought in the Right of the Corporation to Procure a Judgment in Its Favor.

§ 6026. Security for expenses in stockholders' derivative action
brought in the right of the corporation to procure a judgment in its
favor. In any action specified in section six thousand twenty-five, if
the plaintiff or plaintiffs hold less than five percent of any class of
the outstanding shares or hold a beneficial interest in shares
representing less than five percent of any class of such shares, then
unless the shares and beneficial interest of such plaintiff or
plaintiffs have a fair value in excess of fifty thousand dollars, the
corporation in whose right such action is brought shall be entitled at
any stage of the proceedings before final judgment to require the
plaintiff or plaintiffs to give security for the reasonable expenses,
including attorney's fees, which may be incurred by it in connection
with such action and by the other parties defendant in connection
therewith for which the corporation may become liable under this
article, under any contract or otherwise under law, to which the
corporation shall have recourse in such amount as the court having
jurisdiction of such action shall determine upon the termination of such
action. The amount of such security may thereafter from time to time be
increased or decreased in the discretion of the court having
jurisdiction of such action upon showing that the security provided has
or may become inadequate or excessive.

Structure New York Laws