§ 7234 Director Quorum For Contracts

Key Takeaways

•If a company has a meeting to approve a deal, the people who have a personal interest in that deal can still be counted to make sure there are enough people at the meeting.
•This rule only applies if the deal follows the rules from Section 7233.
•It’s about making sure decisions can still be made even if some people involved have a personal stake.

Example

Imagine a small company where the boss and his brother are on the board. They want to approve a deal that helps the brother’s other business.

Even though the brother has a personal interest in the deal, he can still be counted to make sure there are enough people at the meeting to vote on it. But the deal has to follow the rules from Section 7233.

Interested or common directors may be counted in determining the presence of a quorum at a meeting of the board or a committee thereof which authorizes, approves or ratifies a contract or transaction as provided in Section 7233. (Added by Stats. 1978, Ch. 567.)

Key Takeaways

•If a company has a meeting to approve a deal, the people who have a personal interest in that deal can still be counted to make sure there are enough people at the meeting.
•This rule only applies if the deal follows the rules from Section 7233.
•It’s about making sure decisions can still be made even if some people involved have a personal stake.

Example

Imagine a small company where the boss and his brother are on the board. They want to approve a deal that helps the brother’s other business.

Key Takeaways

Example

Key Terms

References

§ 7234 Director Quorum For Contracts

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References