30-29-1340. OTHER REMEDIES LIMITED. (a) The legality of a proposed or completed corporate action described in section 30-29-1302(a), Idaho Code, may not be contested, nor may the corporate action be enjoined, set aside, or rescinded, in a legal or equitable proceeding by a shareholder after the shareholders have approved the corporate action.
(b) Subsection (a) of this section does not apply to a corporate action that:
(1) Was not authorized and approved in accordance with the applicable provisions of:
(i) Part 9, 10, 11, or 12 of this chapter;
(ii) The articles of incorporation or bylaws; or
(iii) The resolution of the board of directors authorizing the corporate action;
(2) Was procured as a result of fraud, a material misrepresentation, or an omission of a material fact necessary to make statements made, in light of the circumstances in which they were made, not misleading;
(3) Is an interested transaction, unless it has been recommended by the board of directors in the same manner as is provided in section 30-29-862, Idaho Code, and has been approved by the shareholders in the same manner as is provided in section 30-29-863, Idaho Code, as if the interested transaction were a director’s conflicting interest transaction; or
(4) Is approved by less than unanimous consent of the voting shareholders pursuant to section 30-29-704, Idaho Code, if:
(i) The challenge to the corporate action is brought by a shareholder who did not consent and as to whom notice of the approval of the corporate action was not effective at least ten (10) days before the corporate action was effected; and
(ii) The proceeding challenging the corporate action is commenced within ten (10) days after notice of the approval of the corporate action is effective as to the shareholder bringing the proceeding.
History:
[30-29-1340, added 2019, ch. 90, sec. 144, p. 319.]
Structure Idaho Code
Chapter 29 - GENERAL BUSINESS CORPORATIONS
Section 30-29-1301 - DEFINITIONS.
Section 30-29-1302 - RIGHT TO APPRAISAL.
Section 30-29-1303 - ASSERTION OF RIGHTS BY NOMINEES AND BENEFICIAL SHAREHOLDERS.
Section 30-29-1320 - NOTICE OF APPRAISAL RIGHTS.
Section 30-29-1321 - NOTICE OF INTENT TO DEMAND PAYMENT — CONSEQUENCES OF VOTING OR CONSENTING.
Section 30-29-1322 - APPRAISAL NOTICE AND FORM.
Section 30-29-1323 - PERFECTION OF RIGHTS — RIGHT TO WITHDRAW.
Section 30-29-1325 - AFTER ACQUIRED SHARES.
Section 30-29-1326 - PROCEDURE IF SHAREHOLDER DISSATISFIED WITH PAYMENT OR OFFER.
Section 30-29-1330 - COURT ACTION.