Montana Code 35-9-301. Shareholder agreements
35-9-301. Shareholder agreements. (1) All the shareholders of a statutory close corporation may agree in writing to regulate the exercise of the corporate powers and the management of the business and affairs of the corporation or the relationship among the shareholders of the corporation.
Terms Used In Montana Code 35-9-301
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- 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.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Writing: includes printing. See Montana Code 1-1-203
(2)An agreement authorized by this section is effective even though:
(a)it eliminates a board of directors;
(b)it restricts the discretion or powers of the board or authorizes director proxies or weighted voting rights;
(c)its effect is to treat the corporation as a partnership; or
(d)it creates a relationship among the shareholders or between the shareholders and the corporation that would otherwise be appropriate only among partners.
(3)If the corporation has a board of directors, an agreement authorized by this section restricting the discretion or powers of the board relieves directors of liability imposed by law and imposes that liability on each person in whom the board’s discretion or power is vested to the extent that the discretion or powers of the board of directors are governed by the agreement.
(4)A provision eliminating a board of directors in an agreement authorized by this section is not effective unless the articles of incorporation contain a statement to that effect as required by 35-9-302.
(5)A provision entitling one or more shareholders to dissolve the corporation under 35-9-404 is effective only if a statement of this right is contained in the articles of incorporation.
(6)To amend an agreement authorized by this section, all the shareholders shall approve the amendment in writing unless the agreement provides otherwise.
(7)Subscribers for shares may act as shareholders with respect to an agreement authorized by this section if shares are not issued when the agreement was made.
(8)This section does not prohibit any other agreement between or among shareholders in a statutory close corporation.