Idaho Code 30-29-860 – Definitions
Current as of: 2023 | Check for updates
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(1) “Control” or “controlled by” means having the power, directly or indirectly, to elect or remove a majority of the members of the board of directors or other governing body of an entity, whether through the ownership of voting shares or interests, by contract, or otherwise; or being subject to a majority of the risk of loss from the entity’s activities or entitled to receive a majority of the entity’s residual returns.
Terms Used In Idaho Code 30-29-860
- Contract: A legal written agreement that becomes binding when signed.
- 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.
- Fiduciary: A trustee, executor, or administrator.
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- person: includes a corporation as well as a natural person;
Idaho Code 73-114Trustee: A person or institution holding and administering property in trust.
(2) “Director’s conflicting interest transaction” means a transaction effected or proposed to be effected by the corporation, or by an entity controlled by the corporation, where at the relevant time the director is a party, had knowledge and a material financial interest known to the director, or knew that a related person was a party or had a material financial interest.
(3) “Fair to the corporation” means, for purposes of section 30-29-861(b)(3), Idaho Code, that the transaction as a whole was beneficial to the corporation, taking into appropriate account whether it was fair in terms of the director’s dealings with the corporation, and comparable to what might have been obtainable in an arm’s length transaction, given the consideration paid or received by the corporation.
(4) “Material financial interest” means a financial interest in a transaction that would reasonably be expected to impair the objectivity of the director’s judgment when participating in action on the authorization of the transaction.
(5) “Related person” means:
(a) The individual’s spouse;
(b) A child, stepchild, grandchild, parent, stepparent, grandparent, sibling, stepsibling, half-sibling, aunt, uncle, niece, or nephew, or spouse of any such person, of the individual or of the individual’s spouse;
(c) A natural living person living in the same house as the individual;
(d) An entity, other than the corporation or an entity controlled by the corporation, controlled by the individual or any person specified in this subsection;
(e) A domestic or foreign business or nonprofit corporation, other than the corporation or an entity controlled by the corporation, of which the individual is a director; an unincorporated entity of which the individual is a general partner or a member of the governing body; or an individual, trust, or estate for whom, or of which, the individual is a trustee, guardian, personal representative, or like fiduciary; or
(f) A person that is, or an entity that is controlled by, an employer of the individual.
(6) “Relevant time” means the time at which directors’ action respecting the transaction is taken in compliance with section 30-29-862, Idaho Code; or if the transaction is not brought before the board of directors, or a committee, for action under section 30-29-862, Idaho Code, at the time the corporation, or an entity controlled by the corporation, becomes legally obligated to consummate the transaction.
(7) “Required disclosure” means disclosure of the existence and nature of the director’s conflicting interest and all facts known to the director respecting the subject matter of the transaction that a director free of such conflicting interest would reasonably believe to be material in deciding whether to proceed with the transaction.