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§ 47-1A-1202 Shareholder approval of certain dispositions.

SD Codified L § 47-1A-1202 (2019) (N/A)
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47-1A-1202. Shareholder approval of certain dispositions. A sale, lease, exchange, or other disposition of assets, other than a disposition described in § 47-1A-1201, requires approval of the corporation's shareholders if the disposition would leave the corporation without a significant continuing business activity. If a corporation retains a business activity that represented at least twenty-five percent of total assets at the end of the most recently completed fiscal year, and twenty-five percent of either income from continuing operations before taxes or revenues from continuing operations for that fiscal year, in each case of the corporation and its subsidiaries on a consolidated basis, the corporation will conclusively be deemed to have retained a significant continuing business activity.

Source: SL 2005, ch 239, § 273.

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§ 47-1A-1201 Disposition of assets not requiring shareholder approval.
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§ 47-1A-1202.1 Resolution authorizing disposition--Recommendation and submission of resolution to shareholders--Conditions.