Title 16 Corporations Chapter 4 Share Assessment Act Section 301 Enforcement of assessment.
16-4-301.Enforcement of assessment.
(1) Payment of a delinquent assessment may be enforced by a corporation in one or more
of the following ways:
(a) imposition of a late charge, penalty, or interest;
(b) suspension of one or more benefits of share ownership, including the right to vote, to
transfer shares, or to delivery of water in the case of a water company;
(c) sale at public auction of the shares on which payment is delinquent; and
(d) any other enforcement method specified in the corporation's articles of incorporation.
(2) In an enforcement action, the corporation may recover the delinquent assessment, any
late charge, penalty, or interest, and all costs of collection, including attorney fees.
(3) (a) The board of directors shall follow enforcement procedures:
(i) as set forth in the articles of incorporation or bylaws; or
(ii) as determined by the board of directors in a manner consistent with the board of
directors' fiduciary duty to shareholders.
(b) If the board of directors determines to sell shares at public auction, the board shall
follow the procedures required by Sections 16-4-302 through 16-4-312.
Enacted by Chapter 367, 2007 General Session
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