South Dakota Codified Laws 47-1A-721.1. Limitation on voting entitlement of shares when owned by a second corporation–Shares held in fiduciary capacity
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Absent special circumstances, the shares of a corporation are not entitled to vote if they are owned, directly or indirectly, by a second corporation, domestic or foreign, and the first corporation owns, directly or indirectly, a majority of the shares entitled to vote for directors of the second corporation. This section does not limit the power of a corporation to vote any shares, including its own shares, held by it in a fiduciary capacity.
Terms Used In South Dakota Codified Laws 47-1A-721.1
- 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.
- Fiduciary: A trustee, executor, or administrator.
Source: SL 2005, ch 239, § 97.