§ 6026. Security for expenses in stockholders' derivative action\nbrought in the right of the corporation to procure a judgment in its\nfavor. In any action specified in section six thousand twenty-five, if\nthe plaintiff or plaintiffs hold less than five percent of any class of\nthe outstanding shares or hold a beneficial interest in shares\nrepresenting less than five percent of any class of such shares, then\nunless the shares and beneficial interest of such plaintiff or\nplaintiffs have a fair value in excess of fifty thousand dollars, the\ncorporation in whose right such action is brought shall be entitled at\nany stage of the proceedings before final judgment to require the\nplaintiff or plaintiffs to give security for the reasonable expenses,\nincluding attorney's fees, which may be incurred by it in connection\nwith such action and by the other parties defendant in connection\ntherewith for which the corporation may become liable under this\narticle, under any contract or otherwise under law, to which the\ncorporation shall have recourse in such amount as the court having\njurisdiction of such action shall determine upon the termination of such\naction. The amount of such security may thereafter from time to time be\nincreased or decreased in the discretion of the court having\njurisdiction of such action upon showing that the security provided has\nor may become inadequate or excessive.\n
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.