As used in sections 33-1127 to 33-1130, inclusive:
(1) “Director's conflicting interest transaction” means a transaction effected or proposed to be effected by the corporation, or by an entity controlled by the corporation, (A) to which, at the relevant time, the director is a party, (B) respecting which, at the relevant time, the director had knowledge and a material financial interest known to the director, or (C) respecting which, at the relevant time, the director knew that a related person was a party or had a material financial interest.
(2) “Control”, including the term “controlled by”, means (A) having the power, directly or indirectly, to elect or remove a majority of the members of the board of directors or other governing body of an entity, whether through membership or the ownership of voting shares or interests, by contract, or otherwise, or (B) being subject to a majority of the risk of loss from the entity's activities or entitled to receive a majority of the entity's residual returns.
(3) “Relevant time” means (A) the time at which directors' action respecting the transaction is taken in compliance with section 33-1129, or (B) if the transaction is not brought before the board of directors of the corporation, or its committee, for action under section 33-1129, at the time the corporation, or an entity controlled by the corporation, becomes legally obligated to consummate the transaction.
(4) “Material financial interest” means a financial interest in a transaction that would reasonably be expected to impair the objectivity of the director when participating in action on the authorization of the transaction.
(5) “Related person” means: (A) The director's spouse, or a parent or sibling thereof; (B) a child, grandchild, parent or sibling of the director, or the spouse of any thereof; (C) an individual (i) living in the same home as the director, or (ii) a trust or estate of which a person specified in subparagraph (A) or (B) of this subdivision or clause (i) of this subparagraph is a substantial beneficiary; (D) an entity, other than the corporation or an entity controlled by the corporation, controlled by the director or any person specified in subparagraphs (A) to (C), inclusive, of this subdivision; (E) a domestic or foreign (i) business or nonprofit corporation, other than the corporation or an entity controlled by the corporation, of which the director is a director, (ii) unincorporated entity of which the director is a general partner or a member of the governing body, or (iii) individual, trust or estate for whom or of which the director is a trustee, guardian, personal representative or like fiduciary; or (F) a person that is, or an entity that is controlled by, an employer of the director.
(6) “Fair to the corporation” means, for purposes of subdivision (3) of subsection (b) of section 33-1128, that the transaction as a whole was beneficial to the corporation, taking into appropriate account whether it was (A) fair in terms of the director's dealings with the corporation, and (B) comparable to what might have been obtainable in an arm's length transaction, given the consideration paid or received by the corporation.
(7) “Required disclosure” means disclosure of (A) the existence and nature of the director's conflicting interest, and (B) all facts known to the director respecting the subject matter of the transaction that a director free of such conflicting interest would reasonably believe to be material in deciding whether to proceed with the transaction.
(P.A. 96-256, S. 93, 209; P.A. 97-246, S. 90, 99; P.A. 06-68, S. 22.)
History: P.A. 96-256 effective January 1, 1997; P.A. 97-246 rephrased definition of “related person” in Subdiv. (3), effective June 27, 1997; P.A. 06-68 replaced former definitions with new Subdivs. (1) to (7) defining “director's conflicting interest transaction”, “control”, “relevant time”, “material financial interest”, “related person”, “fair to the corporation” and “required disclosure”.
Structure Connecticut General Statutes
Chapter 602 - Nonstock Corporations
Section 33-1000. - Short title: Connecticut Revised Nonstock Corporation Act.
Section 33-1001. - Construction of statutes.
Section 33-1002. - Definitions.
Section 33-1003a. - Qualified director.
Section 33-1004. - Filing requirements.
Section 33-1005. - Forms. Mailing address.
Section 33-1006. - Effective time and date of document.
Section 33-1007. - Correcting filed document.
Section 33-1008. - Filing duty of Secretary of the State.
Section 33-1009. - Appeal from Secretary of the State's refusal to file document.
Section 33-1010. - Evidentiary effect of copy of filed document.
Section 33-1011. - Certificate of existence or authorization.
Section 33-1012. - Penalty for signing false document.
Section 33-1013. - Fees payable to Secretary of the State.
Section 33-1014. - Franchise tax.
Section 33-1015. - Powers of Secretary of the State.
Section 33-1016. - Regulations regarding electronic filing.
Section 33-1017. - Interrogatories by Secretary of the State.
Section 33-1025. - Incorporators.
Section 33-1026. - Certificate of incorporation.
Section 33-1027. - Incorporation.
Section 33-1028. - Liability for preincorporation transactions.
Section 33-1029. - Organization of corporation.
Section 33-1031. - Emergency bylaws.
Section 33-1036. - General powers.
Section 33-1037. - Emergency powers.
Section 33-1038. - Ultra vires.
Section 33-1045. - Corporate name.
Section 33-1046. - Reserved name.
Section 33-1047. - Registered name.
Section 33-1050. - Registered office and registered agent.
Section 33-1051. - Change of registered office or registered agent.
Section 33-1052. - Resignation of registered agent.
Section 33-1053. - Service of process on corporation.
Section 33-1055. - Classes of members.
Section 33-1056. - Rules for membership.
Section 33-1057. - Corporation may impose fines and penalties and levy dues and assessments.
Section 33-1058. - Liability of members.
Section 33-1061. - Annual meeting. Regular meeting.
Section 33-1062. - Special meeting.
Section 33-1063. - Court-ordered meeting.
Section 33-1064. - Action without meeting. Validity of actions at meetings not properly called.
Section 33-1065. - Notice of meeting.
Section 33-1066. - Waiver of notice.
Section 33-1067. - Record date.
Section 33-1068. - Chairperson to preside.
Section 33-1069. - Remote participation in meetings.
Section 33-1070. - Members' list for meeting.
Section 33-1071. - Member voting rights.
Section 33-1073. - Corporation's acceptance or rejection of votes.
Section 33-1074. - Quorum and voting requirements.
Section 33-1075. - Action by single and multiple classes of members.
Section 33-1076. - Other quorum or voting requirement.
Section 33-1077. - Voting for directors. Cumulative voting.
Section 33-1078. - Inspectors.
Section 33-1080. - Requirements for and duties of board of directors.
Section 33-1081. - Qualifications of directors.
Section 33-1082. - Number and election of directors.
Section 33-1083. - Special provisions regarding directors.
Section 33-1084. - Election of directors by certain classes of members.
Section 33-1085. - Terms of directors generally.
Section 33-1086. - Staggered terms for directors.
Section 33-1087. - Resignation of directors.
Section 33-1088. - Removal of directors by members or directors.
Section 33-1089. - Proceedings to determine validity of election.
Section 33-1090. - Removal of directors by judicial proceeding.
Section 33-1091. - Vacancy on board of directors.
Section 33-1091a. - Judicial appointment of board of directors.
Section 33-1092. - Compensation of directors.
Section 33-1096. - Court-ordered meeting of directors.
Section 33-1097. - Action without meeting.
Section 33-1098. - Notice of meeting.
Section 33-1099. - Waiver of notice.
Section 33-1100. - Quorum and voting.
Section 33-1101. - Committees.
Section 33-1104. - General standards for directors.
Section 33-1105. - Liability for unlawful distribution.
Section 33-1106. - Liability for loans.
Section 33-1110. - Functions of officers.
Section 33-1111. - Standards of conduct for officers.
Section 33-1112. - Resignation and removal of officers.
Section 33-1113. - Contract rights of officers.
Section 33-1116. - Definitions.
Section 33-1117. - Permissible indemnification.
Section 33-1118. - Mandatory indemnification.
Section 33-1119. - Advance for expenses.
Section 33-1120. - Court-ordered indemnification and advance for expenses.
Section 33-1121. - Determination and authorization of indemnification.
Section 33-1122. - Indemnification of and advance for expenses to officers, employees and agents.
Section 33-1124. - Variation by corporate action.
Section 33-1125. - Exclusivity of provisions.
Section 33-1127. - Definitions.
Section 33-1128. - Judicial action.
Section 33-1129. - Directors' action.
Section 33-1130. - Members' action.
Section 33-1131. - Taking advantage of a business opportunity.
Section 33-1140. - Authority to amend.
Section 33-1141. - Certain amendments by board of directors.
Section 33-1142. - Amendment by board of directors and members.
Section 33-1143. - Amendments by incorporators.
Section 33-1144. - Certificate of amendment.
Section 33-1145. - Restated certificate of incorporation.
Section 33-1146. - Amendment pursuant to reorganization.
Section 33-1147. - Effect of amendment.
Section 33-1150. - Amendment by board of directors or members.
Section 33-1151. - Bylaw increasing quorum or voting requirement for members.
Section 33-1152. - Bylaw increasing quorum or voting requirement for directors.
Section 33-1156. - Action on plan of merger.
Section 33-1157. - Certificate of merger.
Section 33-1158. - Effect of merger.
Section 33-1159. - Merger with foreign corporation.
Section 33-1159a. - Merger with foreign corporation.
Section 33-1159b. - Abandoned merger.
Section 33-1166. - Sale or other disposition of assets leaving no significant continuing activity.
Section 33-1170. - Dissolution by incorporators or initial directors.
Section 33-1171. - Dissolution by resolution of board of directors and members.
Section 33-1172. - Certificate of dissolution.
Section 33-1173. - Revocation of dissolution.
Section 33-1174. - Effect of dissolution.
Section 33-1175. - Adoption of plan for distribution of assets.
Section 33-1176. - Liquidating distribution of assets.
Section 33-1177. - Known claims against dissolved corporation.
Section 33-1178. - Unknown claims against dissolved corporation.
Section 33-1178b. - Duties of directors of dissolved corporation.
Section 33-1181. - Administrative dissolution.
Section 33-1182. - Effect of administrative dissolution.
Section 33-1183. - Reinstatement following administrative dissolution.
Section 33-1184. - Appeal from refusal of reinstatement.
Section 33-1187. - Grounds for judicial dissolution.
Section 33-1188. - Procedure for judicial dissolution.
Section 33-1189. - Receivership or custodianship.
Section 33-1190. - Decree of dissolution.
Section 33-1193. - Deposit of assets with State Treasurer or other state official.
Section 33-1200. - Provisions applicable to specially chartered corporations.
Section 33-1201. - Formation of specially chartered corporation.
Section 33-1202. - Amendment of special charter.
Section 33-1203. - Surrender of charter and reincorporation.
Section 33-1204. - Franchise tax.
Section 33-1205. - Dissolution of specially chartered beach association.
Section 33-1210. - Authority to conduct affairs required.
Section 33-1211. - Consequences of conducting affairs without authority.
Section 33-1212. - Application for certificate of authority.
Section 33-1213. - Amended certificate of authority.
Section 33-1214. - Effect of certificate of authority.
Section 33-1215. - Corporate name of foreign corporation.
Section 33-1216. - Registered office and registered agent of foreign corporation.
Section 33-1217. - Change of registered office or registered agent of foreign corporation.
Section 33-1218. - Resignation of registered agent of foreign corporation.
Section 33-1219. - Service of process on foreign corporation.
Section 33-1222. - Withdrawal of foreign corporation.
Section 33-1225. - Grounds for revocation.
Section 33-1226. - Procedure for and effect of revocation.
Section 33-1227. - Appeal from revocation.
Section 33-1235. - Corporate records.
Section 33-1236. - Inspection of records by members.
Section 33-1237. - Scope of inspection right.
Section 33-1238. - Court-ordered inspection.
Section 33-1239. - Inspection of records by directors.
Section 33-1240. - Exception to notice requirement.
Section 33-1241. - Financial statements.
Section 33-1242. - Other reports to members.
Section 33-1244. - Failure to file report. Incorrect report.
Section 33-1245. - Interim notice of change of director or officer.
Section 33-1285. - Judicial relief.
Section 33-1286. - Applicability to domestic corporations in existence on January 1, 1997.
Section 33-1287. - Applicability to qualified foreign corporations.
Section 33-1288. - Savings provisions.