New Jersey Statutes 14A:3-3. Guaranty not in furtherance of business interest
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Terms Used In New Jersey Statutes 14A:3-3
- 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.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(1) A corporation may give a guaranty not in furtherance of its direct or indirect business interests only when authorized at a meeting of shareholders by the affirmative vote of all of the votes cast by the holders of each class and series of shares entitled to vote thereon. If authorized by such a vote, the guaranty may be secured by a mortgage of or a security interest in all or any part of the corporate property, or any interest therein, wherever situated.
(2) Nothing in subsection 14A:3-3(1) shall be deemed to diminish the rights, if any, of the corporation’s creditors.
L.1968, c.350; amended 1973,c.366,s.7; 1988,c.94,s.11.