There is a newer version of the South Dakota Codified Laws
2006 South Dakota Code - 47-1A-863 — Shareholders\' action respecting transaction--Effectiveness.
47-1A-863. Shareholders' action respecting transaction--Effectiveness. Shareholders' action respecting a transaction is effective for purposes of subdivision 47-1A-861.1(2) if a majority of the votes entitled to be cast by the holders of all qualified shares were cast in favor of the transaction after:
(1) Notice to shareholders describing the
director's conflicting interest transaction;
(2) Provision of the information referred
to in § 47-1A-863.2; and
(3) Required disclosure to the
shareholders who voted on the transaction, to the extent the
information was not known by them.
For purposes
of this section, the term, qualified shares, means any shares
entitled to vote with respect to the director's conflicting
interest transaction except shares that, to the knowledge, before
the vote, of the secretary, or other officer or agent of the
corporation authorized to tabulate votes, are beneficially owned,
or the voting of which is controlled, by a director who has a
conflicting interest respecting the transaction or by a related
person of the director, or both.
Source: SL 2005, ch 239, § 190.
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