GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION
CHAPTER 172
The General Assembly of North Carolina enacts:
Section 1. G.S. 58-65-173(b) reads as rewritten:
"(b) The authorization,
adoption, approval, or favorable recommendation by the board of directors of a public
corporation of any provision in any articles of incorporation, bylaw,
contract or resolution, as permitted in this section, shall not be deemed an
act or corporate transaction in which a director has a conflict of interest,
and no such articles of incorporation or bylaw provision or contract or
resolution shall be void or voidable on such grounds. The authorization,
adoption, approval, or favorable recommendation by the board of directors of a nonpublic
corporation of any provision in any articles of incorporation, bylaw,
contract or resolution, as permitted in this section, which occurred on or
prior to the effective date of this act, shall not be deemed an act or
corporate transaction in which a director has a conflict of interest, and no
such articles of incorporation, bylaw provision, contract or resolution shall
be void or voidable on such grounds. Except as permitted in G.S.
55-8-31, no such bylaw, contract, or resolution not adopted, authorized,
approved or ratified by shareholders shall be effective as to claims made or
liabilities asserted against any director prior to its adoption, authorization,
or approval by the board of directors."
Sec. 2. This act is effective upon ratification.
In the General Assembly read three times and ratified this the 30th day of May, 1991.
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James C. Gardner
President of the Senate
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Daniel Blue, Jr.
Speaker of the House of Representatives