Maine Revised Statutes Title 13-C Sec. 1341 – Other remedies limited
Current as of: 2023 | Check for updates
|
Other versions
1. Limitation on proposed or completed corporate actions. The legality of a proposed or completed corporate action described in section 1302 may not be contested nor may the corporate action be enjoined, set aside or rescinded in a legal or equitable proceeding by a shareholder after the shareholders have approved the corporate action.
[PL 2011, c. 274, §71 (NEW).]
Terms Used In Maine Revised Statutes Title 13-C Sec. 1341
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Fraud: Intentional deception resulting in injury to another.
- Interested transaction: means a corporate action described in section 1302, subsection 1, other than a merger pursuant to section 1105, involving an interested person in which any of the shares or assets of the corporation are being acquired or converted. See Maine Revised Statutes Title 13-C Sec. 1301
- Shareholder: means both a record shareholder and a beneficial shareholder. See Maine Revised Statutes Title 13-C Sec. 1301
2. Exceptions. Subsection 1 does not apply to a corporate action that:
A. Was not authorized and approved in accordance with the applicable provisions of:
(2) The articles of incorporation or bylaws; or
(3) The resolution of the board of directors authorizing the corporate action; [PL 2011, c. 274, §71 (NEW).]
B. Was procured as a result of fraud, a material misrepresentation or an omission of a material fact necessary to make statements made, in light of the circumstances in which they were made, not misleading; [PL 2011, c. 274, §71 (NEW).]
C. Is an interested transaction, unless it has been recommended by the board of directors in the same manner as is provided in section 873 and has been approved by the shareholders in the same manner as is provided in section 874 as if the interested transaction were a director’s conflicting-interest transaction; or [PL 2011, c. 274, §71 (NEW).]
D. Is approved by less than unanimous consent of the voting shareholders pursuant to section 704 if:
(1) The challenge to the corporate action is brought by a shareholder who did not consent and as to whom notice of the approval of the corporate action was not effective at least 10 days before the corporate action was effected; and
(2) The proceeding challenging the corporate action is commenced within 10 days after notice of the approval of the corporate action is effective as to the shareholder bringing the proceeding. [PL 2011, c. 274, §71 (NEW).]
[PL 2011, c. 274, §71 (NEW).]
SECTION HISTORY
PL 2011, c. 274, §71 (NEW).