Derivative proceedings; standing.
A derivative proceeding may be brought in the right of a corporation or foreign corporation to procure a judgment in its favor by one or more members having 5 percent or more of the voting power or by 50 members, whichever is less, if each of these members meets all of the following conditions:
The member was a member of the corporation at the time of the act or omission complained of or became a member through transfer by operation of law from a person who was a member at that time.
(2) Representing corporation's interests.
The member fairly and adequately represents the interests of the corporation in enforcing the right of the corporation.
History: 1997 a. 79
The purpose of the derivative action statute is to allow members, under certain conditions, to bring a claim they could not otherwise bring at all because the cause of action belongs to the association and not to them. Neither the statute nor the case law suggests an intent to limit the right a member has to bring a cause of action that belongs to him or her as an individual. Ewer v. Lake Arrowhead Association, Inc. 2012 WI App 64
, 342 Wis. 2d 194
, 817 N.W.2d 465
Chs. 178-226, Partnerships and Corporations; Transportation; Utilities; Banks; Savings Associations