O.C.G.A.

O.C.G.A. § 14-3-864 (2019)

Effect of court approval of transaction

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)

Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.

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In a case involving a corporation described in paragraph (2) of subsection (a) of Code Section 14-3-1302, a transaction that was not the subject of either directors’ action under Code Section 14-3-862 or members’ action under Code Section 14-3-863 is effective for purposes of paragraph (3) subsection (b) of Code Section 14-3-861 if the transaction is approved by the superior court, in an action in which the Attorney General is joined as a party.

History

(Code 1981, § 14-3-864, enacted by Ga. L. 1991, p. 465, § 1.)

Annotations

COMMENT This section has no counterpart in either the Business Code or the Model Act. It provides a mechanism by which a conflicting interest transaction involving a director and a charitable corporation can be judicially approved. It is intended to address a possible situation in which there are neither qualified directors nor qualified members to approve a conflicting interest transaction that is in the corporation’s best interest.