Code of Alabama |
Match Context and Document information |
URL: | http://alisondb.legislature.state.al.us/alison/CodeOfAlabama /1975/10A-1-1.04.htm |
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Depth: | 0 singles |
Size: | 2,795 bytes |
Modified: | 2011-01-13 14:23:48 |
Categories: | -None- |
Title: | 10A-1-1.04 |
Description: | -None- |
Keywords: | -None- |
Meta data: | -None- |
Body: | Section 10A-1-1.04 Disinterested person. (a) For purposes of this title, a person is disinterested with respect to the approval of a contract, transaction, or other matter or to the consideration of the disposition of a claim or challenge relating to a contract, transaction, or particular conduct, if the person or the person's associate: (1) is not a party to the contract or transaction or materially involved in the conduct that is the subject of the claim or challenge; and (2) does not have a material financial interest in the outcome of the contract or transaction or the disposition of the claim or challenge. (b) For purposes of subsection (a), a person is not materially involved in the conduct that is the subject of a claim or challenge and does not have a material financial interest in the outcome of a contract or transaction or the disposition of a claim or challenge solely because: (1) the person was nominated or elected as a governing person by a person who is: (A) interested in the contract or transaction; or (B) alleged to have engaged in the conduct that is the subject of the claim or challenge; (2) the person receives normal fees or customary compensation, reimbursement for expenses, or benefits as a governing person of the entity; (3) the person has a direct or indirect equity interest in the entity; (4) the entity has, or its subsidiaries have, an interest in the contract or transaction or was affected by the alleged conduct; (5) the person or an associate of the person receives ordinary and reasonable compensation for reviewing, making recommendations regarding, or deciding on the disposition of the claim or challenge; or (6) in the case of a review by the person of the alleged conduct that is the subject of the claim or challenge: (A) the person is named as a defendant in the derivative proceeding regarding the matter or as a person who engaged in the alleged conduct; or (B) the person, acting as a governing person, approved, voted for, or acquiesced in the act being challenged if the act did not result in a material personal or financial benefit to the person and the challenging party fails to allege particular facts that, if true, raise a significant prospect that the governing person would be held liable to the entity or its owners or members as a result of the conduct. (Act 2009-513, p. 967, ยง2.) |