The Arizona Revised Statutes have been updated to include the revised sections from the 56th Legislature, 1st Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 56th Legislature, 2nd Regular Session, which convenes in January 2024.
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This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
29-3807 - Other remedies in direct and derivative actions
29-3807. Other remedies in direct and derivative actions
The court, in its discretion, at any stage in a direct or derivative proceeding, may:
1. Treat a direct action as a derivative action subject to, or exempt from, any provisions of this article the court chooses and order recovery to be paid to the limited liability company if the court finds that doing so is reasonably necessary to avoid any of the following:
(a) Unfairly exposing the company or the defendants to a multiplicity of actions.
(b) Materially adversely affecting the interests of the company's creditors.
(c) Interfering with a fair distribution of any recovery among interested persons.
2. Treat a derivative action as a direct action subject to, or exempt from, any provisions of this article the court chooses and order recovery to be paid to the plaintiff if the court finds that justice so requires.