47-1A-1402. Proposal to dissolve by board of directors--Requirements for adoption.
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/sd/title-47/chapter-47-1/47-1a-1402·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A corporation's board of directors may propose dissolution for submission to the shareholders. For a proposal to dissolve to be adopted:
(1)The board of directors must recommend dissolution to the shareholders unless the board of directors determines that because of conflict of interest or other special circumstances it should make no recommendation and communicates the basis for its determination to the shareholders; and
(2)The shareholders entitled to vote must approve the proposal to dissolve as provided in § 47-1A-1402.3 .