For the purposes of this part, the term: “Control”, including the term “controlled by”, means: 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 the ownership of voting shares or interests, by contract, or otherwise; or 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. “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: To which, at the relevant time, the director is a party; Respecting which, at the relevant time, the director had knowledge and a material financial interest known to the director; or Respecting which, at the relevant time, the director knew that a related person was a party or had a material financial interest. “Fair to the corporation” means, for the purposes of § 29-306.71(b)(3) , that the transaction as a whole was beneficial to the corporation, taking into appropriate account whether it was: Fair in terms of the director’s dealings with the corporation; and Comparable to what might have been obtainable in an arm’s length transaction, given the consideration paid or received by the corporation. “Material financial interest” means a financial interest in a transaction that would reasonably be expected to impair the objectivity of the director’s judgment when participating in action on the authorization of the transaction. “Related person” means: The director’s spouse; A child, stepchild, grandchild, parent, step parent, grandparent, sibling, step sibling, half sibling, aunt, uncle, niece or nephew, or spouse of any thereof, of the director or of the director’s spouse; An individual living in the same home as the director; An entity, other than the corporation or an entity controlled by the corporation, controlled by the director or any person specified above in this paragraph; A domestic or foreign: Business or nonprofit corporation, other than the corporation or an entity controlled by the corporation, of which the director is a governor; Unincorporated entity of which the director is a governor or a member of the governing body; or Individual, trust, or estate for whom or of which the director is a trustee, guardian, personal representative, or like fiduciary; or A person that is, or an entity that is controlled by, an employer of the director. “Relevant time” means: The time at which directors’ action respecting the transaction is taken in compliance with § 29-306.72 ; or If the transaction is not brought before the board of directors of the corporation, or its committee, for action under § 29-306.72 , at the time the corporation, or an entity controlled by the corporation, becomes legally obligated to consummate the transaction. “Required disclosure” means disclosure of: The existence and nature of the director’s conflicting interest; and 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.
‹ Prev All District Of Columbia sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.