Indiana Code 23-17-13-2.5. Contracts and transactions in which member, director, officer, or member of designated body has interest
(b) Subject to subsection (c), a contract or transaction between:
Terms Used In Indiana Code 23-17-13-2.5
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Quorum: The number of legislators that must be present to do business.
(2) a corporation and any other corporation, partnership, association, or entity in which one (1) or more of the corporation’s members, directors, officers, or members of a designated body:
(A) are members, directors, members of a designated body, or officers;
(B) hold a similar position; or
(C) have a financial interest;
is not void or voidable solely because of the relationship or interest, solely because the member, director, member of a designated body, or officer is present at or participates in the meeting of the board of directors that authorizes the contract or transaction, or solely because the vote of the member, director, member of a designated body, or officer is counted for authorizing the contract or transaction.
(c) A contract or transaction described under subsection (b) is not void or voidable as provided under subsection (b) if one (1) or more of the following apply:
(1) The:
(A) material facts as to the:
(i) relationship or interest of a member, a director, a member of a designated body, or an officer; and
(ii) contract or transaction;
are disclosed or known to the board of directors; and
(B) board of directors in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors even if the disinterested directors are less than a quorum.
(2) The:
(A) material facts as to the:
(i) relationship or interest of the member, director, member of a designated body, or officer; and
(ii) contract or transaction;
are disclosed or known to the members who are entitled to vote on the contract or transaction; and
(B) contract or transaction is specifically approved in good faith by a vote of the members who are entitled to vote on the contract or transaction.
(3) The contract or transaction is fair as to the corporation at the time the contract or transaction is authorized, approved, or ratified by the board of directors or the members.
(d) Common or interested directors may be counted in determining the presence of a quorum at a meeting of the board that authorizes a contract or transaction described under subsection (b).
As added by P.L.110-2008, SEC.6.