Montana Code 35-14-802. Qualifications of directors
35-14-802. Qualifications of directors. (1) The articles of incorporation or bylaws may prescribe qualifications for directors or for nominees for directors. Qualifications must be reasonable as applied to the corporation and must be lawful.
Terms Used In Montana Code 35-14-802
- 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.
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
(2)A requirement that is based on a past, prospective, or current action or expression of opinion by a nominee or director that could limit the ability of a nominee or director to discharge the duties of a director is not a permissible qualification under this section. However, qualifications may include not being or having been subject to specified criminal, civil, or regulatory sanctions or not having been removed as a director by judicial action or for cause.
(3)A director need not be a resident of this state or a shareholder unless the articles of incorporation or bylaws prescribe those requirements.
(4)A qualification for nomination for director prescribed before a person‘s nomination applies to the person at the time of nomination. A qualification for nomination for director prescribed after a person’s nomination does not apply to the person with respect to the nomination.
(5)A qualification for director prescribed before a director has been elected or appointed applies only at the time an individual becomes a director or during a director’s term. A qualification prescribed after a director has been elected or appointed does not apply to that director before the end of that director’s term.