Indiana Code

Ind. Code § 23-17-4-4 (2026)

Challenges based on corporate power to act

✓ current as of May 2026
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     Sec. 4. (a) Except as provided in subsection (b), the validity of corporate action may not be challenged on the ground that the corporation lacks or lacked power to act.

     (b) A corporation's power to act may be challenged in a proceeding against the corporation for a declaratory judgment or to enjoin an act where a third party has not acquired rights. The proceeding may be brought by the attorney general or a director.

As added by P.L.179-1991, SEC.1.

 

IC 23-17-5Chapter 5. Repealed

Repealed by P.L.118-2017, SEC.88.

 

IC 23-17-6Chapter 6. Repealed

Repealed by P.L.118-2017, SEC.89.

 

IC 23-17-7Chapter 7. Members; Admission; Types of Memberships; Rights and Duties

 

           23-17-7-1Criteria or procedures for admission; consent
           23-17-7-2Consideration for admission
           23-17-7-3Corporations without members
           23-17-7-4Rights and duties; membership classes
           23-17-7-5Transfer rights; restrictions
           23-17-7-6Liability for acts or debts of corporation
           23-17-7-7Liability for obligations; transferee's liability
           23-17-7-8Creditor's proceedings; liability of members; prerequisites; intervention and joinder
           23-17-7-9Advancements or loans to corporation; return or repayment

 

Notes of Decisions
Cited in 5 cases (1 in the last 5 years), 2002–2023 · leading case: Richard Doermer v. Kathryn Callen, 847 F.3d 522 (7th Cir. 2017).
Richard Doermer v. Kathryn Callen, 847 F.3d 522 (7th Cir. 2017). “Second, Indiana Code § 23-17-4-4(b) provides that a “corporation’s power to act may be challenged in a proceeding against the corporation for a declaratory judgment or to enjoin an act where a third party has not acquired rights.”
City of East Chicago v. East Chicago Second Century, Inc., 878 N.E.2d 358 (Ind. Ct. App. 2007). · cites it 4× “Ind.Code § 23-17-4-4(b) provides: "A [nonprofit] corporation's power to act may be challenged in a proceeding against the corporation for a declaratory judgment or to enjoin an act where a third party has not acquired rights.”
Butcher v. Girl Scouts of Tribal Trails Council, Inc., 779 N.E.2d 946 (Ind. Ct. App. 2002). · cites it 2× “" Ind.Code § 23-17-4-4(b). None of the original plaintiffs are directors, but the .”
Conroad Assocs.. L.P. v. Castleton Corner Owners Ass'n, Inc. (S.D. Ind. 2023). · cites it 4× “" Indiana Code § 23-17-4-4 provides that "(a) [e]xcept as provided in subsection (b), the validity of corporate action may not be challenged on the ground that the corporation lacks or lacked power to act.”
Martindale Brightwood CDC Ex Rel. DeWalt v. Gore, 878 N.E.2d 1280 (Ind. Ct. App. 2008). · cites it 4× “Indiana Code section 23-17-4-4(b) provides: “A corporation’s power to act may be challenged in a proceeding against the corporation for a declaratory judgment or to enjoin an act where a third party has not acquired rights.”
Ind. Code § 23-17-4-4(b): 4 cases
Richard Doermer v. Kathryn Callen, 847 F.3d 522 (7th Cir. 2017). “Second, Indiana Code § 23-17-4-4(b) provides that a “corporation’s power to act may be challenged in a proceeding against the corporation for a declaratory judgment or to enjoin an act where a third party has not acquired rights.”
City of East Chicago v. East Chicago Second Century, Inc., 878 N.E.2d 358 (Ind. Ct. App. 2007). “Ind.Code § 23-17-4-4(b) provides: "A [nonprofit] corporation's power to act may be challenged in a proceeding against the corporation for a declaratory judgment or to enjoin an act where a third party has not acquired rights.”
Butcher v. Girl Scouts of Tribal Trails Council, Inc., 779 N.E.2d 946 (Ind. Ct. App. 2002). “" Ind.Code § 23-17-4-4(b). None of the original plaintiffs are directors, but the .”
Martindale Brightwood CDC Ex Rel. DeWalt v. Gore, 878 N.E.2d 1280 (Ind. Ct. App. 2008). “Indiana Code section 23-17-4-4(b) provides: “A corporation’s power to act may be challenged in a proceeding against the corporation for a declaratory judgment or to enjoin an act where a third party has not acquired rights.”
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