Corporations Code section 15910.05

(a)

Except as otherwise provided in subdivision (b):

(1)

any proceeds or other benefits of a derivative action, whether by judgment, compromise, or settlement, belong to the limited partnership and not to the derivative plaintiff;

(2)

if the derivative plaintiff receives any of those proceeds, the derivative plaintiff shall immediately remit them to the limited partnership.

(b)

If a derivative action is successful in whole or in part, the court may award the plaintiff reasonable expenses, including reasonable attorney’s fees, from the recovery of the limited partnership.

Source: Section 15910.05, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=CORP§ionNum=15910.­05.­ (updated Jan. 1, 2007; accessed Jul. 14, 2025).

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Verified:
Jul. 14, 2025

§ 15910.05's source at ca​.gov