No shareholder may challenge a completed corporate action described in § 47-1A-1302, other than those subscribed in subdivisions 47-1A-1302.1(3) and (4), unless such corporate action:

(1) Was not effectuated in accordance with the applicable provisions of §§ 47-1A-901 to 47-1A-1202.6, inclusive, or the corporation‘s articles of incorporation, bylaws or board of directors’ resolution authorizing the corporate action; or

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Terms Used In South Dakota Codified Laws 47-1A-1302.3

  • 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.
  • Fraud: Intentional deception resulting in injury to another.

(2) Was procured as a result of fraud or material misrepresentation.

Source: SL 2005, ch 239, § 284.