Under the new law, P.L. 2013, Chapter 42, a shareholder cannot proceed with derivative suit proceedings unless<\/p>\n

1) The shareholder was a shareholder of the corporation when the alleged misconduct occurred, or if the shareholder alleging the misconduct had the shares transferred by operation of law from a shareholder who was a shareholder at the time of the misconduct; and<\/p>\n

2) The shareholder is just in representing the interests of the corporation in proceeding with the action.<\/p>\n

The shareholder must also maintain share ownership throughout the derivative suit. \u00a0The purpose of this section is to make sure that the shareholder bringing the derivative suit has the best interests of the corporation in bringing the action.<\/p>\n