(a) Members' action respecting a director's conflicting interest transaction is effective for purposes of subdivision (2) of subsection (b) of section 33-1128 if a majority of the votes cast by the members entitled to vote are in favor of the transaction after (1) notice to members entitled to vote describing the action to be taken respecting the transaction, (2) provision to the corporation of the information referred to in subsection (b) of this section, and (3) communication to the members entitled to vote on the transaction of the information that is the subject of required disclosure, to the extent the information is not known by them.
(b) A director who has a conflicting interest respecting the transaction shall, before the members' vote, inform the secretary or other officer or agent of the corporation authorized to tabulate votes, in writing, of any members entitled to vote who, to the knowledge of such director, are (1) a director who has a conflicting interest respecting the transaction, or (2) a related person of any such director, excluding a person described in subparagraph (F) of subdivision (5) of section 33-1127.
(c) For purposes of this section, the members entitled to vote with respect to a director's conflicting interest transaction are any members entitled to vote, except members entitled to vote who the secretary or other officer or agent of the corporation authorized to tabulate votes either knows, or under subsection (b) of this section is notified, are either (1) a director who has a conflicting interest respecting the transaction, or (2) a related person of the director, excluding a person described in subparagraph (F) of subdivision (5) of section 33-1127.
(d) A majority of the votes entitled to be cast by the members entitled to vote with respect to the transaction constitutes a quorum for purposes of compliance with this section. Subject to the provisions of subsection (e) of this section, members' action that otherwise complies with this section is not affected by the presence, or by the voting, of members that are not entitled to vote with respect to the transaction.
(e) If a members' vote does not comply with subsection (a) of this section solely because of a director's failure to comply with subsection (b) of this section, and if the director establishes that the failure was not intended to influence and did not in fact determine the outcome of the vote, the court may take such action respecting the transaction and the director, and may give such effect, if any, to the members' vote, as the court considers appropriate in the circumstances.
(f) Where members' action under this section does not satisfy a quorum or voting requirement applicable to the authorization of the transaction by reason of the certificate of incorporation, the bylaws or a provision of law, independent action to satisfy those authorization requirements must be taken by the members, in which action members that are not entitled to vote on the transaction may participate.
(P.A. 96-256, S. 96, 209; P.A. 97-246, S. 64, 91, 99; P.A. 06-68, S. 25.)
History: P.A. 96-256 effective January 1, 1997; P.A. 97-246 amended Subsec. (b) to insert Subdiv. indicators, amend Subdiv. (1) to specify that the directors are directors “who have a conflicting interest respecting the transaction” and make technical changes, and amended Subsec. (d) to make a technical change, effective June 27, 1997; P.A. 06-68 amended Subsec. (a) by repositioning “director's conflicting interest”, inserting “action to be taken respecting the” in Subdiv. (1) and “to the corporation” in Subdiv. (2), replacing “required disclosure” with “communication” and “who voted” with “entitled to vote” and inserting “of the information that is the subject of required disclosure” in Subdiv. (3), and making technical changes, added new Subsec. (b) re action of director who has a conflicting interest respecting the transaction, redesignated existing Subsec. (b) as new Subsec. (c) and amended same by deleting “to the knowledge, before the vote, of”, replacing former Subdivs. (1) and (2) with new provisions re exceptions to members entitled to vote with respect to director's conflicting interest transaction and making technical changes, deleted former Subsecs. (c) and (d) re action in compliance with section, added new Subsec. (d) re quorum and effect of presence of or voting by members that are not entitled to vote with respect to the transaction, amended Subsec. (e) by inserting “in fact” re determination of vote outcome, deleting provision re further proceedings respecting Sec. 33-1128(b)(3) and making technical changes, and added Subsec. (f) re satisfaction of transaction authorization requirements.
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.