Tennessee Code 48-24-102 – Dissolution by Board of Directors and Shareholders
Current as of: 2021 | Check for updates | Other versions
- A corporation may be voluntarily dissolved by the written consent of its shareholders in accordance with § 48-17-104.
- A corporation’s board of directors may propose dissolution for submission to the shareholders.
- board of directors: means the governing board of a corporation, whether denominated the board of directors or otherwise, except that no person or group of persons is the board of directors because of powers delegated to that person or group pursuant to §. See Tennessee Code 48-51-201
- Charter: includes amended and restated charters and articles of merger. See Tennessee Code 48-11-201
- 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.
- Directors: means natural persons, designated in the charter or bylaws or elected or appointed by the incorporators, and their successors and natural persons elected or appointed to act as members of the board, irrespective of the names or titles by which such persons are described. See Tennessee Code 48-51-201
- Dissolution: means that the LLC has incurred an event under §. See Tennessee Code 48-202-101
- Interest: means either or both of the following rights under the organic law of an unincorporated entity:
- The right to receive distributions from the entity either in the ordinary course or upon liquidation. See Tennessee Code 48-11-201
- Shareholder: means the person in whose name shares are registered in the records of a corporation or the beneficial owner of shares to the extent of the rights granted by a nominee certificate on file with a corporation. See Tennessee Code 48-11-201
- State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
- written: means any information in the form of a document. See Tennessee Code 48-11-201
- For a proposal to dissolve to be adopted:
- The board of directors shall recommend dissolution to the shareholders unless the board of directors determines that because of conflict of interest or other special circumstances, it should make no recommendation and communicates the basis for its determination to the shareholders; and
- The shareholders entitled to vote shall approve the proposal to dissolve as provided in subsection (f).
- The board of directors may condition its submission of the proposal for dissolution on any basis.
- The corporation shall notify each shareholder, whether or not entitled to vote, of the proposed shareholders’ meeting in accordance with § 48-17-105. The notice must also state that the purpose, or one (1) of the purposes, of the meeting is to consider dissolving the corporation.
- Unless the charter or the board of directors (acting pursuant to subsection (d)) requires a greater vote or a vote by voting groups, the proposal to dissolve to be adopted shall be approved by a majority of all the votes entitled to be cast on that proposal.
Terms Used In Tennessee Code 48-24-102