16-10a-1804. Scope of part.

458 words·~2 min read·/ut/title-16/chapter-10a/16-10a-1804

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

Effective 5/9/2017

This part does not apply to:

(1)a business combination of a domestic corporation that does not have a class of voting stock registered with the Securities and Exchange Commission pursuant to Exchange Act, Sec. 12, 15 U.S.C. Sec. 78l, unless the articles of incorporation provide otherwise;

(2)a business combination of a domestic corporation whose articles of incorporation are amended to provide that the domestic corporation is subject to this part that:

(a)did not have a class of voting stock registered with the Securities and Exchange Commission pursuant to Exchange Act, Sec. 12, 15 U.S.C. Sec. 78l, on the effective date of the amendment; and

(b)is a business combination with an interested shareholder whose stock acquisition date is before the effective date of the amendment;

(3)a business combination of a domestic corporation:

(a)the original articles of incorporation of which contain a provision expressly electing not to be governed by this part;

(b)that adopts an amendment to the corporation's bylaws before December 31, 2017, expressly electing not to be governed by this part; or

(c)that adopts an amendment to the corporation's bylaws, approved by the affirmative vote of a majority of votes of the outstanding voting stock of the corporation, excluding the voting stock of interested shareholders and the interested shareholders' affiliates and associates, expressly electing not to be governed by this part, provided that the amendment to the bylaws:

(i)may not be effective until 18 months after the vote of the corporation's shareholders; and

(ii)may not apply to a business combination of the corporation with an interested shareholder whose stock acquisition date is on or before the effective date of the amendment;

(4)a domestic corporation in the mineral extractive industry, including exploration, development, sand and gravel, mining, smelting, or refining of mineral properties;

(5)any business combination of a domestic corporation with an interested shareholder of the corporation that became an interested shareholder inadvertently, if the interested shareholder:

(a)as soon as practicable, divests itself of a sufficient amount of the voting stock of the corporation so that it no longer is the beneficial owner, directly or indirectly, of 20% or more of the outstanding voting stock of the corporation; and

(b)would not at any time within the five-year period preceding the announcement date with respect to the business combination have been an interested shareholder but for the inadvertent acquisition; or

(6)any business combination with an interested shareholder who was the beneficial owner, directly or indirectly, of 5% or more of the outstanding voting stock of the corporation on May 9, 2017, and remained so to the interested shareholder's stock acquisition date.

Enacted by Chapter 439 , 2017 General Session