Section 10A-18-1.07 - Financial review(a) If a member of an Alabama statewide trade association has a reasonable belief that financial fraud or malfeasance has occurred or is occurring at the Alabama statewide trade association, that member may petition the Montgomery County Circuit Court for an independent audit of the financial statements of the Alabama statewide trade association. For good cause shown, the court may order an independent audit of the financial statements of the Alabama statewide trade association with that independent audit report to be made to the court. If the court does not find good cause, the court costs shall be assessed to the petitioning member. If the court does find good cause, the court costs and the cost of the audit shall be assessed to the Alabama statewide trade association.(b) In making its determination, the court may review among other matters, whether the Alabama statewide trade association (i) prepared its annual financial statements for its last three fiscal years (or such shorter period of existence), (ii) had an independent audit of its financial statements for its last three fiscal years (or such shorter period of existence), (iii) timely filed its federal or state income tax returns for its last three fiscal years (or such shorter period of existence), or (iv) incurred negative financial performance without a reasonable basis and/or board approval.Ala. Code § 10A-18-1.07 (1975)
Added by Act 2024-413,§ 3, eff. 6/1/2024.