21-218.05. Notice requirements.

296 words·~1 min read·/ne/chapter-21/21-218-05

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(MBCA 1.49)

(a)Unless shareholder approval is required under subsection

(c)of section 21-218.03 , prompt notice of an action taken under section 21-218.03 shall be given to each holder of valid and putative shares, regardless of whether entitled to vote, as of

(i)the date of such action by the board of directors and

(ii)the date of the defective corporate action ratified, provided that notice shall not be required to be given to holders of valid and putative shares whose identities or addresses for notice cannot be determined from the records of the corporation.

(b)The notice must contain

(i)either a copy of the action taken by the board of directors in accordance with subsection

(a)or

(b)of section 21-218.03 or the information required by subdivisions (a)(1) through

(4)or (b)(1) through

(3)of section 21-218.03 , as applicable, and

(ii)a statement that any claim that the ratification of the defective corporate action and any putative shares issued as a result of such defective corporate action should not be effective, or should be effective only on certain conditions, must be brought within one hundred twenty days from the applicable validation effective time.

(c)No notice under this section is required with respect to any action required to be submitted to shareholders for approval under subsection

(c)of section 21-218.03 if notice is given in accordance with subsection

(b)of section 21-218.04 .

(d)A notice required by this section may be given in any manner permitted by section 21-215 and, for any corporation subject to the reporting requirements of section 13 or 15(d) of the Securities Exchange Act of 1934, may be given by means of a filing or furnishing of such notice with the United States Securities and Exchange Commission.