Section 42: Record date; closing transfer books
259 words·~1 min read·
/ma/part-i/title-xxii/chapter-156b/42·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 42. The directors may fix in advance a time, which, unless a shorter period is provided in the articles of organization or the by-laws, shall be not more than sixty days before the date of any meeting of stockholders or the date for the payment of any dividend or the making of any distribution to stockholders or the last day on which the consent or dissent of stockholders may be effectively expressed for any purpose, as the record date for determining the stockholders having the right to notice of and to vote at such meeting and any adjournment thereof or the right to receive such dividend or distribution or the right to give such consent or dissent, and in such case only stockholders of record on such record date shall have such right, notwithstanding any transfer of stock on the books of the corporation after the record date; or without fixing such record date the directors may for any of such purposes close the transfer books for all or any part of such period.
If no record date is fixed and the transfer books are not closed:—
(1)The record date for determining stockholders having the right to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given.
(2)The record date for determining stockholders for any other purpose shall be at the close of business on the day on which the board of directors acts with respect thereto.