---
title: O.C.G.A. § 14-2-740. Definitions.
collection: code
id: 14-2-740
cite_as: O.C.G.A. § 14-2-740 (2025)
canonical_url: https://georgiacommons.org/code/14-2-740
md_url: https://georgiacommons.org/code/14-2-740.md
text_url: https://georgiacommons.org/code/14-2-740/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t14-(v12)-2017-pdf.pdf?sfvrsn=507372ea_0#page=203
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/code/14-2.md
previous: https://georgiacommons.org/code/14-2-732.md
next: https://georgiacommons.org/code/14-2-741.md
index: https://georgiacommons.org/code/index.md
version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS / BUSINESS CORPORATIONS / SHAREHOLDERS / DERIVATIVE PROCEEDINGS
---

# O.C.G.A. § 14-2-740. Definitions.

As used in this part, the term:

(1) ‘‘Derivative proceeding’’ means a civil suit in the right of a domestic corporation or, to the extent provided in Code Section 14-2-747, in the right of a foreign corporation.

(2) ‘‘Shareholder’’ includes a beneficial owner whose shares are held in a voting trust or held by a nominee on the owner’s behalf.

## History

Code 1981, § 14-2-740, enacted by Ga. L. 1988, p. 1070, § 1.

## Law Reviews

For article, ‘‘The Development of the Shareholder’s Direct Action Damage Remedy,’’ see 28 Ga. St. B. J. 195 (1992). For article, ‘‘Litigation Discovery and Corporate Governance: The Missing Story About the ‘Genius of American Corporate Law,’’’ see 63 Emory L.J. 1383 (2014).