S.D. Codified Laws § 47-1A-862

Current through the 2024 Legislative Session

Section 47-1A-862 - Directors' action respecting transaction-Effectiveness

Directors' action respecting a transaction is effective for purposes of subdivision 47-1A-861.1(1) if the transaction received the affirmative vote of a majority, but no fewer than one, of those qualified directors on the board of directors or on a duly empowered committee of the board who voted on the transaction after either required disclosure to them, to the extent the information was not known by them, or compliance with § 47-1A-861.1. However, action by a committee is effective only if:

(1) At least one of its members is a qualified director; and

(2) Its members are either all the qualified directors on the board or are appointed by the affirmative vote of a majority of the qualified directors on the board.

SDCL 47-1A-862

SL 2005, ch 239, §186; SL 2019, ch 196, §1.

Amended by S.L. 2019, ch. 196,s. 1, eff. 7/1/2019.