Stay of proceedings

If the corporation commences an inquiry into the allegations made in the demand or complaint, the court may stay any derivative proceeding for such period as the court deems appropriate. (Code 1981, § 14-2-743, enacted by Ga. L. 1988, p. 1070, § 1; Ga. L. 1989, p. 946, § 30.) COMMENT Source: Model Act, § 7.43 (under consideration, 1987). There was no counterpart in former Georgia law. 209 14-2-743 CORPORATIONS & PARTNERSHIPS 14-2-744 Section 14-2-743 provides that if the corporation undertakes an investigation, the court may in its discretion stay the proceeding for such period as the court deems appropriate. A stay might be granted if the complaint is filed 90 days after demand but the investigation of the demand has not been completed or if the corporation commences the investigation after the complaint has been filed, prior to the expiration of 90 days from demand alleging that irreparable injury will be incurred by delaying the filing of the action. In either case, it is expected that the court will monitor the course of investigation to ensure that it is proceeding expeditiously and in good faith. Note to 1989 Amendment The words ‘‘inquiry into’’ were substituted for ‘‘investigation of ’’ to conform to the Model Act’s proposed language. Cross-References ‘‘Derivative proceeding’’ defined, see § 14-2-740. 14-2-744. Dismissal.