Rule 3.502 Secondary Action by Shareholders

(A) Pleading. In an action brought by one or more shareholders in an incorporated or unincorporated association because the association has refused or failed to enforce rights which may properly be asserted by it, the complaint shall set forth under oath and with particularity the efforts of the plaintiff to secure from the managing directors or trustees the action the plaintiff desires and the reasons for the failure to obtain such action, or the reasons for not making such an effort.

(B) Security. At any stage of an action under this subrule the court may require such security and impose such terms as shall fairly and adequately protect the interests of the class or association in whose behalf the action is brought or defended.

(C) Notice. The court may order that notice be given, in the manner and to the persons it directs,

(1) of the right of absent persons to appear and present claims and defenses;

(2) of the pendency of the action;

(3) of a proposed settlement;

(4) of entry of judgment; or

(5) of any other proceedings in the action.

(D) Inadequate Representation. Whenever the representation appears to the court inadequate to protect the interests of absent persons who may be bound by the judgment, the court may at any time prior to judgment order an amendment of the pleadings to eliminate references to representation of absent persons, and the court shall enter judgment in such form as to affect only the parties to the action and those adequately represented.