Vermont Statutes Title 11 Sec. 8-13
Terms Used In Vermont Statutes Title 11 Sec. 8-13
- 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.
- Corporation: means public benefit and mutual benefit corporation. See
- Directors: means individuals, designated in the articles or bylaws or elected by the incorporators, and their successors and individuals elected or appointed by any other name or title to act as members of the board. See
- Individual: includes the estate of an individual who is incompetent. See
§ 8.13. Financially disinterested majority—Public benefit corporations
(a) No more than 49 percent of the individuals serving on the board of any public benefit corporation may be financially interested persons.
(b) For the purposes of this section, “financially interested persons” means:
(1) individuals who have received or are entitled to receive compensation, directly or indirectly, from the corporation for services rendered to it within the previous 12 months, whether as full- or part-time employees, independent contractors, consultants, or otherwise, excluding any reasonable payments made to directors for serving as directors; or
(2) any spouse, brother, sister, parent, or child of any such individual.
(c) The failure to comply with the provisions of this section shall not affect the validity or enforceability of any transaction entered into by a corporation. (Added 1995, No. 179 (Adj. Sess.), § 1, eff. Jan. 1, 1997.)