Montana Code 35-14-143. Qualified director
35-14-143. Qualified director. (1) A qualified director is a director who, at the time action is to be taken under:
Terms Used In Montana Code 35-14-143
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
(a)35-14-202(2)(f), is not a director:
(i)to whom the limitation or elimination of the duty of an officer to offer potential business opportunities to the corporation would apply; or
(ii)who has a material relationship with any other person to whom the limitation or elimination would apply;
(b)35-14-744, does not have:
(i)a material interest in the outcome of the proceeding; or
(ii)a material relationship with a person who has such an interest;
(i)is not a party to the proceeding;
(ii)is not a director as to whom a transaction is a director’s conflicting interest transaction or who sought a disclaimer of the corporation’s interest in a business opportunity under 35-14-870, which transaction or disclaimer is challenged in the proceeding; and
(iii)does not have a material relationship with a director described in subsection (1)(c)(i) or (1)(c)(ii);
(d)35-14-862, is not a director:
(i)as to whom the transaction is a director’s conflicting interest transaction; or
(ii)who has a material relationship with another director as to whom the transaction is a director’s conflicting interest transaction; or
(e)35-14-870, is not a director who:
(i)pursues or takes advantage of the business opportunity directly or indirectly through or on behalf of another person; or
(ii)has a material relationship with a director or officer who pursues or takes advantage of the business opportunity, directly or indirectly through or on behalf of another person.
(2)For purposes of this section:
(a)”material interest” means an actual or potential benefit or detriment, other than one that would devolve on the corporation or the shareholders generally, that would reasonably be expected to impair the objectivity of the director’s judgment when participating in the action to be taken; and
(b)”material relationship” means a familial, financial, professional, employment, or other relationship that would reasonably be expected to impair the objectivity of the director’s judgment when participating in the action to be taken.
(3)The presence of one or more of the following circumstances does not automatically prevent a director from being a qualified director:
(a)nomination or election of the director to the current board by any director who is not a qualified director with respect to the matter (or by any person that has a material relationship with that director), acting alone or participating with others;
(b)service as a director of another corporation of which a director who is not a qualified director with respect to the matter (or any individual who has a material relationship with that director) is or was also a director; or
(c)with respect to action to be taken under 35-14-744, status as a named defendant, as a director against whom action is demanded, or as a director who approved the conduct being challenged.