16-10a-1201 - Sale or mortgage of property without shareholder approval.
16-10a-1201. Sale or mortgage of property without shareholder approval.
(1) A corporation may, on the terms and conditions and for the consideration determinedby the board of directors:
(a) sell, lease, exchange, or otherwise dispose of all, or substantially all, of its property inthe usual and regular course of business or in a transaction not requiring shareholder approval asprovided in Section 16-10a-1202;
(b) mortgage, pledge, dedicate to the repayment of indebtedness, whether with or withoutrecourse, or otherwise encumber any or all of its property whether or not in the usual and regularcourse of business; or
(c) transfer any or all of its property to a corporation all the shares of which are owned bythe corporation.
(2) Unless otherwise provided in the articles of incorporation, approval by theshareholders of a transaction described in Subsection (1) is not required.
Enacted by Chapter 277, 1992 General Session