There is a newer version of this Section
2022
2021
2020
2019
2018
Other previous versions
View our newest version here

2017 Kentucky Revised Statutes
CHAPTER 271B - BUSINESS CORPORATIONS
Subtitle 3 - Purposes and Powers
271B.3-040 Ultra vires.

Universal Citation: KY Rev Stat § 271B.3-040 (2017)
Previous

Download as PDF
271B.3-040 Ultra vires. (1) (2) Except as provided in subsection (2) of this section, the validity of corporate action shall not be challenged on the ground that the corporation lacks or lacked power to act. A corporation's power to act may be challenged in a proceeding by: (a) A shareholder against the corporation to enjoin the act; (b) The corporation, directly, derivatively, or through a receiver, trustee, or other legal representative, against an incumbent or former director, officer, employee, or agent of the corporation; or (c) The Attorney General under KRS 271B.14-300. (d) In a shareholder's proceeding under subsection (2)(a) of this section to enjoin an unauthorized corporate act, the court may enjoin or set aside the act, if equitable and if all affected persons are parties to the proceeding, and may award damages for loss (other than anticipated profits) suffered by the corporation or another party because of enjoining the unauthorized act. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 23, sec. 25, effective January 1, 1989.
Previous
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.