---
title: O.C.G.A. § 7-1-440. Derivative actions by shareholders; when proper.
collection: code
id: 7-1-440
cite_as: O.C.G.A. § 7-1-440 (2025)
canonical_url: https://georgiacommons.org/code/7-1-440
md_url: https://georgiacommons.org/code/7-1-440.md
text_url: https://georgiacommons.org/code/7-1-440/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t7-t8-(v5)-2024-pdf.pdf?sfvrsn=6386add7_0#page=255
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/7-1.md
previous: https://georgiacommons.org/code/7-1-439.md
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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: BANKING AND FINANCE / FINANCIAL INSTITUTIONS / BANKS AND TRUST COMPANIES / SHAREHOLDERS
---

# O.C.G.A. § 7-1-440. Derivative actions by shareholders; when proper.

A derivative action may be brought by a shareholder in the right of the bank or trust company to procure a judgment in its favor against directors, officers, or other representatives of the bank or trust company, or shareholders, or third parties, or any combination thereof, whenever the bank or trust company has a claim or cause of action which the representatives of the bank or trust company, in violation of their duties, have failed to enforce, including a claim or cause of action against such representatives for their failure in this respect.

## History

Code 1933, § 41A-2011, enacted by Ga. L. 1974, p. 705, § 1.