30-29-145. DEFINITIONS. For purposes of sections 30-29-145 through 30-29-152, Idaho Code:

(1) "Corporate action" means any action taken by or on behalf of the corporation, including any action taken by the incorporator, the board of directors, a committee of the board of directors, an officer or agent of the corporation, or the shareholders.

(2) "Date of the defective corporate action" means the date, or the approximate date if the exact date is unknown, the defective corporate action was purported to have been taken.

(3) "Defective corporate action" means any corporate action purportedly taken that is, and at the time such corporate action was purportedly taken, would have been within the power of the corporation, but is void or voidable due to a failure of authorization, and is an overissue.

(4) "Failure of authorization" means the failure to authorize, approve or otherwise effect a corporate action in compliance with the provisions of this chapter, the articles of incorporation or bylaws, a corporate resolution, or any plan or agreement to which the corporation is a party, if and to the extent such failure would render such corporate action void or voidable.

(5) "Overissue" means the purported issuance of shares of a class or series in excess of the number of shares of a class or series the corporation has the power to issue under section 30-29-601, Idaho Code, at the time of such issuance; or shares of any class or series that is not then authorized for issuance by the articles of incorporation.

(6) "Putative shares" means the shares of any class or series, including shares issued upon exercise of rights, options, warrants, or other securities convertible into shares of the corporation or interests with respect to such shares that were created or issued as a result of a defective corporate action that, but for any failure of authorization, would constitute valid shares or cannot be determined by the board of directors to be valid shares.

(7) "Valid shares" means the shares of any class or series that have been duly authorized and validly issued in accordance with this chapter, including as a result of ratification or validation under sections 30-29-145 through 30-29-152, Idaho Code.

(8) "Validation effective time" with respect to any defective corporate action ratified under sections 30-29-145 through 30-29-152, Idaho Code, means the later of:

(a) The time at which the ratification of the defective corporate action is approved by the shareholders, or if approval of shareholders is not required, the time at which the notice required by section 30-29-149, Idaho Code, becomes effective in accordance with section 30-29-141, Idaho Code; and

(b) The time at which any articles of validation filed in accordance with section 30-29-151, Idaho Code, become effective.

The validation effective time shall not be affected by the filing or pendency of a judicial proceeding under section 30-29-152, Idaho Code, or otherwise, unless otherwise ordered by the court.

History:

[30-29-145, added 2019, ch. 90, sec. 8, p. 233.]