2016 Utah Code
Title 16 - Corporations
Chapter 4 - Share Assessment Act
Part 3 - Enforcement
Section 301 - Enforcement of assessment.

16-4-301. Enforcement of assessment.

• (1) Payment of a delinquent assessment may be enforced by a corporation in one or more of the following ways:
  • (a) imposition of a late charge, penalty, or interest;
  • (b) suspension of one or more benefits of share ownership, including the right to vote, to transfer shares, or to delivery of water in the case of a water company;
  • (c) sale at public auction of the shares on which payment is delinquent; and
  • (d) any other enforcement method specified in the corporation's articles of incorporation.

• (2) In an enforcement action, the corporation may recover the delinquent assessment, any late charge, penalty, or interest, and all costs of collection, including attorney fees.

• (3)
  • (a) The board of directors shall follow enforcement procedures:
    • (i) as set forth in the articles of incorporation or bylaws; or
    • (ii) as determined by the board of directors in a manner consistent with the board of directors' fiduciary duty to shareholders.
  • (b) If the board of directors determines to sell shares at public auction, the board shall follow the procedures required by Sections 16-4-302 through 16-4-312.

Enacted by Chapter 367, 2007 General Session