South Dakota Codified Laws 46A-9-86. Director or employee benefit from contract authorized–Direct benefit described
For purposes of § 46A-9-85, a direct benefit from a contract is derived if the director or employee, the spouse of the director or employee, or any other person with whom the director or employee lives and commingles assets:
(1) Has more than a five percent ownership interest in an entity that is a party to the contract;
Terms Used In South Dakota Codified Laws 46A-9-86
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contract: A legal written agreement that becomes binding when signed.
- Person: includes natural persons, partnerships, associations, cooperative corporations, limited liability companies, and corporations. See South Dakota Codified Laws 2-14-2
- Personal property: includes money, goods, chattels, things in action, and evidences of debt. See South Dakota Codified Laws 2-14-2
- Personal property: All property that is not real property.
(2) Derives income, compensation, or commission directly from the contract or from an entity that is a party to the contract;
(3) Acquires real or personal property under the contract; or
(4) Serves as a director on the board of a for-profit entity that:
(a) Derives income or a commission from the contract; or
(b) Acquires real or personal property under the contract.
A direct benefit is not derived solely from the value associated with any investment or holdings by a director or employee, the spouse of the director or employee, or any other person with whom the director or employee lives and commingles assets.
Source: SL 2023, ch 152, § 2.