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[Status][Bill Documents][Fiscal Note][Bills Directory]

First Substitute S.B. 61

Senator Lyle W. Hillyard proposes to substitute the following bill:


             1     
REVISED NONPROFIT CORPORATION ACT

             2     
2000 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Lyle W. Hillyard

             5      AN ACT RELATING TO CORPORATIONS; ENACTING A NEW NONPROFIT
             6      CORPORATIONS ACT; ESTABLISHING GENERAL PROVISIONS; ADDRESSING
             7      INCORPORATION; ADDRESSING POWERS AND PURPOSES; ADDRESSING NAMES;
             8      ADDRESSING OFFICE AND AGENTS; ADDRESSING MEMBERSHIP; ADDRESSING
             9      MEETINGS AND VOTING OF MEMBERS; ADDRESSING DIRECTORS AND OFFICERS;
             10      ADDRESSING INDEMNIFICATION; ADDRESSING AMENDMENTS TO ARTICLES OF
             11      INCORPORATION OR BYLAWS; ADDRESSING MERGERS; ADDRESSING SALES OF
             12      PROPERTY; ADDRESSING DISTRIBUTIONS; ADDRESSING DISSOLUTION;
             13      ADDRESSING FOREIGN NONPROFIT CORPORATIONS; ADDRESSING RECORDS,
             14      INFORMATION, AND REPORTS; ADDRESSING TRANSITION; ADDRESSING
             15      CONVERSIONS BETWEEN NONPROFIT AND FORPROFIT ENTITIES; MAKING
             16      TECHNICAL CHANGES; PROVIDING AN EFFECTIVE DATE; AND PROVIDING A
             17      COORDINATION CLAUSE.
             18      This act affects sections of Utah Code Annotated 1953 as follows:
             19      AMENDS:
             20          3-1-25, as last amended by Chapter 66, Laws of Utah 1987
             21          3-1-30, as last amended by Chapter 203, Laws of Utah 1994
             22          3-1-31, as last amended by Chapter 203, Laws of Utah 1994
             23          3-1-44, as enacted by Chapter 204, Laws of Utah 1994
             24          7-5-2, as last amended by Chapter 6, Laws of Utah 1982
             25          9-13-201, as enacted by Chapter 76, Laws of Utah 1999


             26          11-32-3, as last amended by Chapter 235, Laws of Utah 1995
             27          11-32-8, as enacted by Chapter 143, Laws of Utah 1987
             28          16-7-13, as enacted by Chapter 48, Laws of Utah 1993
             29          16-7-14, as enacted by Chapter 48, Laws of Utah 1993
             30          17A-3-903, as renumbered and amended by Chapter 186, Laws of Utah 1990
             31          21-1-2, as last amended by Chapter 313, Laws of Utah 1994
             32          21-1-2.5, as last amended by Chapter 313, Laws of Utah 1994
             33          31A-5-101, as last amended by Chapter 6, Laws of Utah 1992, Third Special Session
             34          31A-5-102, as last amended by Chapter 131, Laws of Utah 1999
             35          31A-5-104, as last amended by Chapter 277, Laws of Utah 1992
             36          31A-5-203, as last amended by Chapter 344, Laws of Utah 1995
             37          31A-5-219, as last amended by Chapter 277, Laws of Utah 1992
             38          31A-5-404, as last amended by Chapter 277, Laws of Utah 1992
             39          31A-5-405, as last amended by Chapter 95, Laws of Utah 1987
             40          31A-5-407, as last amended by Chapter 277, Laws of Utah 1992
             41          31A-5-409, as last amended by Chapter 22, Laws of Utah 1989
             42          31A-5-410, as last amended by Chapter 277, Laws of Utah 1992
             43          31A-5-415, as last amended by Chapter 9, Laws of Utah 1996, Second Special Session
             44          31A-5-503, as enacted by Chapter 242, Laws of Utah 1985
             45          31A-5-504, as last amended by Chapter 277, Laws of Utah 1992
             46          31A-5-508, as last amended by Chapter 20, Laws of Utah 1995
             47          31A-7-103, as last amended by Chapter 277, Laws of Utah 1992
             48          31A-7-201, as last amended by Chapter 344, Laws of Utah 1995
             49          31A-7-202, as last amended by Chapter 91, Laws of Utah 1987
             50          31A-7-303, as last amended by Chapter 91, Laws of Utah 1987
             51          31A-7-304, as enacted by Chapter 242, Laws of Utah 1985
             52          31A-7-313, as enacted by Chapter 242, Laws of Utah 1985
             53          31A-8-103, as last amended by Chapter 44, Laws of Utah 1997
             54          31A-8-204, as last amended by Chapter 79, Laws of Utah 1996
             55          31A-8-406, as enacted by Chapter 204, Laws of Utah 1986
             56          31A-9-101, as last amended by Chapter 327, Laws of Utah 1990


             57          31A-9-105, as last amended by Chapter 277, Laws of Utah 1992
             58          31A-9-204, as last amended by Chapter 91, Laws of Utah 1987
             59          31A-9-212, as last amended by Chapter 91, Laws of Utah 1987
             60          31A-9-405, as enacted by Chapter 242, Laws of Utah 1985
             61          31A-9-406, as enacted by Chapter 242, Laws of Utah 1985
             62          31A-9-502, as enacted by Chapter 242, Laws of Utah 1985
             63          31A-11-105, as last amended by Chapter 277, Laws of Utah 1992
             64          31A-14-205, as last amended by Chapter 9, Laws of Utah 1996, Second Special Session
             65          31A-14-210, as last amended by Chapter 9, Laws of Utah 1996, Second Special Session
             66          31A-22-1305, as enacted by Chapter 204, Laws of Utah 1986
             67          31A-27-335, as last amended by Chapter 131, Laws of Utah 1999
             68          31A-34-105, No change since 1953
             69          31A-34-108, No change since 1953
             70          41-22-2, as last amended by Chapter 73, Laws of Utah 1999
             71          48-2b-106, as last amended by Chapter 38, Laws of Utah 1999
             72          53B-5-114, as enacted by Chapter 86, Laws of Utah 1998
             73          59-8-103, as last amended by Chapter 278, Laws of Utah 1995
             74          63-11-3.1, as enacted by Chapter 225, Laws of Utah 1998
             75      ENACTS:
             76          16-6a-101, Utah Code Annotated 1953
             77          16-6a-102, Utah Code Annotated 1953
             78          16-6a-103, Utah Code Annotated 1953
             79          16-6a-104, Utah Code Annotated 1953
             80          16-6a-105, Utah Code Annotated 1953
             81          16-6a-106, Utah Code Annotated 1953
             82          16-6a-107, Utah Code Annotated 1953
             83          16-6a-108, Utah Code Annotated 1953
             84          16-6a-109, Utah Code Annotated 1953
             85          16-6a-110, Utah Code Annotated 1953
             86          16-6a-111, Utah Code Annotated 1953
             87          16-6a-112, Utah Code Annotated 1953


             88          16-6a-113, Utah Code Annotated 1953
             89          16-6a-114, Utah Code Annotated 1953
             90          16-6a-115, Utah Code Annotated 1953
             91          16-6a-116, Utah Code Annotated 1953
             92          16-6a-117, Utah Code Annotated 1953
             93          16-6a-118, Utah Code Annotated 1953
             94          16-6a-201, Utah Code Annotated 1953
             95          16-6a-202, Utah Code Annotated 1953
             96          16-6a-203, Utah Code Annotated 1953
             97          16-6a-204, Utah Code Annotated 1953
             98          16-6a-205, Utah Code Annotated 1953
             99          16-6a-206, Utah Code Annotated 1953
             100          16-6a-207, Utah Code Annotated 1953
             101          16-6a-301, Utah Code Annotated 1953
             102          16-6a-302, Utah Code Annotated 1953
             103          16-6a-303, Utah Code Annotated 1953
             104          16-6a-304, Utah Code Annotated 1953
             105          16-6a-401, Utah Code Annotated 1953
             106          16-6a-402, Utah Code Annotated 1953
             107          16-6a-403, Utah Code Annotated 1953
             108          16-6a-501, Utah Code Annotated 1953
             109          16-6a-502, Utah Code Annotated 1953
             110          16-6a-503, Utah Code Annotated 1953
             111          16-6a-504, Utah Code Annotated 1953
             112          16-6a-601, Utah Code Annotated 1953
             113          16-6a-602, Utah Code Annotated 1953
             114          16-6a-603, Utah Code Annotated 1953
             115          16-6a-604, Utah Code Annotated 1953
             116          16-6a-605, Utah Code Annotated 1953
             117          16-6a-606, Utah Code Annotated 1953
             118          16-6a-607, Utah Code Annotated 1953


             119          16-6a-608, Utah Code Annotated 1953
             120          16-6a-609, Utah Code Annotated 1953
             121          16-6a-610, Utah Code Annotated 1953
             122          16-6a-611, Utah Code Annotated 1953
             123          16-6a-612, Utah Code Annotated 1953
             124          16-6a-613, Utah Code Annotated 1953
             125          16-6a-701, Utah Code Annotated 1953
             126          16-6a-702, Utah Code Annotated 1953
             127          16-6a-703, Utah Code Annotated 1953
             128          16-6a-704, Utah Code Annotated 1953
             129          16-6a-705, Utah Code Annotated 1953
             130          16-6a-706, Utah Code Annotated 1953
             131          16-6a-707, Utah Code Annotated 1953
             132          16-6a-708, Utah Code Annotated 1953
             133          16-6a-709, Utah Code Annotated 1953
             134          16-6a-710, Utah Code Annotated 1953
             135          16-6a-711, Utah Code Annotated 1953
             136          16-6a-712, Utah Code Annotated 1953
             137          16-6a-713, Utah Code Annotated 1953
             138          16-6a-714, Utah Code Annotated 1953
             139          16-6a-715, Utah Code Annotated 1953
             140          16-6a-716, Utah Code Annotated 1953
             141          16-6a-717, Utah Code Annotated 1953
             142          16-6a-718, Utah Code Annotated 1953
             143          16-6a-801, Utah Code Annotated 1953
             144          16-6a-802, Utah Code Annotated 1953
             145          16-6a-803, Utah Code Annotated 1953
             146          16-6a-804, Utah Code Annotated 1953
             147          16-6a-805, Utah Code Annotated 1953
             148          16-6a-806, Utah Code Annotated 1953
             149          16-6a-807, Utah Code Annotated 1953


             150          16-6a-808, Utah Code Annotated 1953
             151          16-6a-809, Utah Code Annotated 1953
             152          16-6a-810, Utah Code Annotated 1953
             153          16-6a-811, Utah Code Annotated 1953
             154          16-6a-812, Utah Code Annotated 1953
             155          16-6a-813, Utah Code Annotated 1953
             156          16-6a-814, Utah Code Annotated 1953
             157          16-6a-815, Utah Code Annotated 1953
             158          16-6a-816, Utah Code Annotated 1953
             159          16-6a-817, Utah Code Annotated 1953
             160          16-6a-818, Utah Code Annotated 1953
             161          16-6a-819, Utah Code Annotated 1953
             162          16-6a-820, Utah Code Annotated 1953
             163          16-6a-821, Utah Code Annotated 1953
             164          16-6a-822, Utah Code Annotated 1953
             165          16-6a-823, Utah Code Annotated 1953
             166          16-6a-824, Utah Code Annotated 1953
             167          16-6a-825, Utah Code Annotated 1953
             168          16-6a-826, Utah Code Annotated 1953
             169          16-6a-901, Utah Code Annotated 1953
             170          16-6a-902, Utah Code Annotated 1953
             171          16-6a-903, Utah Code Annotated 1953
             172          16-6a-904, Utah Code Annotated 1953
             173          16-6a-905, Utah Code Annotated 1953
             174          16-6a-906, Utah Code Annotated 1953
             175          16-6a-907, Utah Code Annotated 1953
             176          16-6a-908, Utah Code Annotated 1953
             177          16-6a-909, Utah Code Annotated 1953
             178          16-6a-910, Utah Code Annotated 1953
             179          16-6a-1001, Utah Code Annotated 1953
             180          16-6a-1002, Utah Code Annotated 1953


             181          16-6a-1003, Utah Code Annotated 1953
             182          16-6a-1004, Utah Code Annotated 1953
             183          16-6a-1005, Utah Code Annotated 1953
             184          16-6a-1006, Utah Code Annotated 1953
             185          16-6a-1007, Utah Code Annotated 1953
             186          16-6a-1008, Utah Code Annotated 1953
             187          16-6a-1009, Utah Code Annotated 1953
             188          16-6a-1010, Utah Code Annotated 1953
             189          16-6a-1011, Utah Code Annotated 1953
             190          16-6a-1012, Utah Code Annotated 1953
             191          16-6a-1013, Utah Code Annotated 1953
             192          16-6a-1014, Utah Code Annotated 1953
             193          16-6a-1101, Utah Code Annotated 1953
             194          16-6a-1102, Utah Code Annotated 1953
             195          16-6a-1103, Utah Code Annotated 1953
             196          16-6a-1104, Utah Code Annotated 1953
             197          16-6a-1105, Utah Code Annotated 1953
             198          16-6a-1201, Utah Code Annotated 1953
             199          16-6a-1202, Utah Code Annotated 1953
             200          16-6a-1301, Utah Code Annotated 1953
             201          16-6a-1302, Utah Code Annotated 1953
             202          16-6a-1401, Utah Code Annotated 1953
             203          16-6a-1402, Utah Code Annotated 1953
             204          16-6a-1403, Utah Code Annotated 1953
             205          16-6a-1404, Utah Code Annotated 1953
             206          16-6a-1405, Utah Code Annotated 1953
             207          16-6a-1406, Utah Code Annotated 1953
             208          16-6a-1407, Utah Code Annotated 1953
             209          16-6a-1408, Utah Code Annotated 1953
             210          16-6a-1409, Utah Code Annotated 1953
             211          16-6a-1410, Utah Code Annotated 1953


             212          16-6a-1411, Utah Code Annotated 1953
             213          16-6a-1412, Utah Code Annotated 1953
             214          16-6a-1413, Utah Code Annotated 1953
             215          16-6a-1414, Utah Code Annotated 1953
             216          16-6a-1415, Utah Code Annotated 1953
             217          16-6a-1416, Utah Code Annotated 1953
             218          16-6a-1417, Utah Code Annotated 1953
             219          16-6a-1418, Utah Code Annotated 1953
             220          16-6a-1419, Utah Code Annotated 1953
             221          16-6a-1501, Utah Code Annotated 1953
             222          16-6a-1502, Utah Code Annotated 1953
             223          16-6a-1503, Utah Code Annotated 1953
             224          16-6a-1504, Utah Code Annotated 1953
             225          16-6a-1505, Utah Code Annotated 1953
             226          16-6a-1506, Utah Code Annotated 1953
             227          16-6a-1507, Utah Code Annotated 1953
             228          16-6a-1508, Utah Code Annotated 1953
             229          16-6a-1509, Utah Code Annotated 1953
             230          16-6a-1510, Utah Code Annotated 1953
             231          16-6a-1511, Utah Code Annotated 1953
             232          16-6a-1512, Utah Code Annotated 1953
             233          16-6a-1513, Utah Code Annotated 1953
             234          16-6a-1514, Utah Code Annotated 1953
             235          16-6a-1515, Utah Code Annotated 1953
             236          16-6a-1516, Utah Code Annotated 1953
             237          16-6a-1517, Utah Code Annotated 1953
             238          16-6a-1518, Utah Code Annotated 1953
             239          16-6a-1601, Utah Code Annotated 1953
             240          16-6a-1602, Utah Code Annotated 1953
             241          16-6a-1603, Utah Code Annotated 1953
             242          16-6a-1604, Utah Code Annotated 1953


             243          16-6a-1605, Utah Code Annotated 1953
             244          16-6a-1606, Utah Code Annotated 1953
             245          16-6a-1607, Utah Code Annotated 1953
             246          16-6a-1608, Utah Code Annotated 1953
             247          16-6a-1609, Utah Code Annotated 1953
             248          16-6a-1701, Utah Code Annotated 1953
             249          16-6a-1702, Utah Code Annotated 1953
             250          16-6a-1703, Utah Code Annotated 1953
             251          16-6a-1704, Utah Code Annotated 1953
             252          16-10a-1008.5, Utah Code Annotated 1953
             253      REPEALS:
             254          16-6-18, as enacted by Chapter 17, Laws of Utah 1963
             255          16-6-19, as last amended by Chapter 108, Laws of Utah 1990
             256          16-6-20, as last amended by Chapter 48, Laws of Utah 1993
             257          16-6-21, as last amended by Chapter 143, Laws of Utah 1996
             258          16-6-22, as enacted by Chapter 17, Laws of Utah 1963
             259          16-6-23, as enacted by Chapter 17, Laws of Utah 1963
             260          16-6-24, as last amended by Chapter 86, Laws of Utah 1998
             261          16-6-25, as last amended by Chapter 48, Laws of Utah 1990
             262          16-6-25.1, as last amended by Chapter 108, Laws of Utah 1990
             263          16-6-25.2, as last amended by Chapter 108, Laws of Utah 1990
             264          16-6-25.3, as enacted by Chapter 178, Laws of Utah 1985
             265          16-6-26, as enacted by Chapter 17, Laws of Utah 1963
             266          16-6-27, as enacted by Chapter 17, Laws of Utah 1963
             267          16-6-28, as enacted by Chapter 17, Laws of Utah 1963
             268          16-6-29, as enacted by Chapter 17, Laws of Utah 1963
             269          16-6-30, as enacted by Chapter 17, Laws of Utah 1963
             270          16-6-31, as enacted by Chapter 17, Laws of Utah 1963
             271          16-6-32, as enacted by Chapter 17, Laws of Utah 1963
             272          16-6-33, as last amended by Chapter 66, Laws of Utah 1984
             273          16-6-34, as enacted by Chapter 17, Laws of Utah 1963


             274          16-6-35, as enacted by Chapter 17, Laws of Utah 1963
             275          16-6-36, as enacted by Chapter 17, Laws of Utah 1963
             276          16-6-37, as last amended by Chapter 79, Laws of Utah 1996
             277          16-6-38, as enacted by Chapter 17, Laws of Utah 1963
             278          16-6-39, as enacted by Chapter 17, Laws of Utah 1963
             279          16-6-40, as enacted by Chapter 17, Laws of Utah 1963
             280          16-6-41, as enacted by Chapter 17, Laws of Utah 1963
             281          16-6-42, as last amended by Chapter 222, Laws of Utah 1988
             282          16-6-43, as enacted by Chapter 17, Laws of Utah 1963
             283          16-6-44, as enacted by Chapter 17, Laws of Utah 1963
             284          16-6-45, as last amended by Chapter 178, Laws of Utah 1985
             285          16-6-46, as last amended by Chapter 178, Laws of Utah 1985
             286          16-6-47, as last amended by Chapter 178, Laws of Utah 1985
             287          16-6-48, as enacted by Chapter 17, Laws of Utah 1963
             288          16-6-49, as last amended by Chapter 277, Laws of Utah 1992
             289          16-6-50, as enacted by Chapter 17, Laws of Utah 1963
             290          16-6-51, as last amended by Chapter 178, Laws of Utah 1985
             291          16-6-52, as last amended by Chapter 178, Laws of Utah 1985
             292          16-6-53, as last amended by Chapter 66, Laws of Utah 1984
             293          16-6-53.5, as enacted by Chapter 97, Laws of Utah 1989
             294          16-6-54, as enacted by Chapter 17, Laws of Utah 1963
             295          16-6-55, as enacted by Chapter 17, Laws of Utah 1963
             296          16-6-56, as last amended by Chapter 68, Laws of Utah 1987
             297          16-6-57, as last amended by Chapter 178, Laws of Utah 1985
             298          16-6-58, as last amended by Chapter 66, Laws of Utah 1984
             299          16-6-59, as enacted by Chapter 17, Laws of Utah 1963
             300          16-6-60, as last amended by Chapter 277, Laws of Utah 1992
             301          16-6-61, as last amended by Chapter 68, Laws of Utah 1987
             302          16-6-62, as last amended by Chapter 68, Laws of Utah 1987
             303          16-6-63, as last amended by Chapter 222, Laws of Utah 1988
             304          16-6-64, as enacted by Chapter 17, Laws of Utah 1963


             305          16-6-65, as last amended by Chapter 66, Laws of Utah 1984
             306          16-6-66, as last amended by Chapter 178, Laws of Utah 1985
             307          16-6-67, as last amended by Chapter 178, Laws of Utah 1985
             308          16-6-68, as last amended by Chapter 108, Laws of Utah 1990
             309          16-6-69, as last amended by Chapter 30, Laws of Utah 1992
             310          16-6-70, as enacted by Chapter 17, Laws of Utah 1963
             311          16-6-71, as enacted by Chapter 17, Laws of Utah 1963
             312          16-6-72, as enacted by Chapter 17, Laws of Utah 1963
             313          16-6-73, as enacted by Chapter 17, Laws of Utah 1963
             314          16-6-74, as enacted by Chapter 17, Laws of Utah 1963
             315          16-6-75, as last amended by Chapter 66, Laws of Utah 1984
             316          16-6-76, as last amended by Chapter 10, Laws of Utah 1997
             317          16-6-77, as last amended by Chapter 66, Laws of Utah 1984
             318          16-6-78, as last amended by Chapter 66, Laws of Utah 1984
             319          16-6-79, as last amended by Chapter 66, Laws of Utah 1984
             320          16-6-80, as enacted by Chapter 17, Laws of Utah 1963
             321          16-6-82, as enacted by Chapter 17, Laws of Utah 1963
             322          16-6-83, as last amended by Chapter 178, Laws of Utah 1985
             323          16-6-84, as last amended by Chapter 108, Laws of Utah 1990
             324          16-6-85, as last amended by Chapter 66, Laws of Utah 1984
             325          16-6-86, as last amended by Chapter 66, Laws of Utah 1987
             326          16-6-87, as last amended by Chapter 108, Laws of Utah 1990
             327          16-6-88, as last amended by Chapter 178, Laws of Utah 1985
             328          16-6-89, as last amended by Chapter 66, Laws of Utah 1984
             329          16-6-90, as last amended by Chapter 66, Laws of Utah 1984
             330          16-6-91, as last amended by Chapter 178, Laws of Utah 1985
             331          16-6-92, as last amended by Chapter 66, Laws of Utah 1984
             332          16-6-93, as last amended by Chapter 178, Laws of Utah 1985
             333          16-6-94, as last amended by Chapter 222, Laws of Utah 1988
             334          16-6-95, as last amended by Chapter 66, Laws of Utah 1984
             335          16-6-96, as enacted by Chapter 17, Laws of Utah 1963


             336          16-6-97, as last amended by Chapter 66, Laws of Utah 1987
             337          16-6-98, as last amended by Chapter 108, Laws of Utah 1990
             338          16-6-99, as last amended by Chapter 28, Laws of Utah 1995
             339          16-6-99.1, as last amended by Chapter 313, Laws of Utah 1994
             340          16-6-100, as last amended by Chapter 313, Laws of Utah 1994
             341          16-6-100.5, as last amended by Chapter 313, Laws of Utah 1994
             342          16-6-101, as last amended by Chapter 313, Laws of Utah 1994
             343          16-6-102, as last amended by Chapter 66, Laws of Utah 1984
             344          16-6-103, as last amended by Chapter 161, Laws of Utah 1987
             345          16-6-104, as last amended by Chapter 66, Laws of Utah 1984
             346          16-6-105, as last amended by Chapter 66, Laws of Utah 1984
             347          16-6-106, as enacted by Chapter 17, Laws of Utah 1963
             348          16-6-107, as last amended by Chapter 166, Laws of Utah 1987
             349          16-6-108, as last amended by Chapter 10, Laws of Utah 1997
             350          16-6-109, as last amended by Chapter 66, Laws of Utah 1984
             351          16-6-110, as enacted by Chapter 17, Laws of Utah 1963
             352          16-6-112, as enacted by Chapter 66, Laws of Utah 1987
             353      Be it enacted by the Legislature of the state of Utah:
             354          Section 1. Section 3-1-25 is amended to read:
             355           3-1-25. Filing of annual reports.
             356          Domestic associations and foreign associations admitted to do business in this state shall
             357      file an annual report in accordance with [Sections 16-6-97 and 16-6-98 ] Section 16-6a-1607 .
             358          Section 2. Section 3-1-30 is amended to read:
             359           3-1-30. Authorization for merger or consolidation with other associations or
             360      corporations -- Laws governing surviving or new corporation.
             361          (1) Pursuant to a plan approved under this chapter, an agricultural cooperative association
             362      may merge or consolidate with:
             363          (a) one or more agricultural cooperative associations;
             364          (b) one or more domestic corporations governed by:
             365          (i) Title 16, Chapter 10a, Utah Revised Business Corporation Act; or
             366          (ii) Title 16, Chapter [6] 6a, Utah Revised Nonprofit Corporation [and Cooperative


             367      Association] Act; or
             368          (c) any combination of associations or corporations referred to in Subsection (1)(a) or (b).
             369          (2) The surviving or new corporation shall be governed by:
             370          (a) the Uniform Agricultural Cooperative Association Act; or
             371          (b) Title 16, Chapter [6] 6a, Utah Revised Nonprofit Corporation [and Cooperative
             372      Association] Act.
             373          Section 3. Section 3-1-31 is amended to read:
             374           3-1-31. Contents and approval of plan of merger or consolidation.
             375          (1) The board of directors, board of trustees, or other governing board of each party to the
             376      merger or consolidation shall, by resolution adopted by each board, approve a plan of merger or
             377      consolidation.
             378          (2) The plan shall contain:
             379          (a) the name of:
             380          (i) each association or corporation proposing to merge or consolidate; and
             381          (ii) (A) the association or corporation into which they propose to merge or consolidate,
             382      also referred to as the surviving corporation; or
             383          (B) the new corporation;
             384          (b) the terms and conditions of the proposed merger or consolidation;
             385          (c) the manner and basis of converting stock or shares of each party to the merger or
             386      consolidation, into stock, shares, or other securities or obligations of the surviving or new
             387      corporation;
             388          (d) the manner and basis of converting membership interests of each party to the merger
             389      into membership interests, stock, shares, or other securities or obligations of the surviving or new
             390      corporation;
             391          (e) the manner and basis of converting any certificates of interest, patronage refund
             392      certificates, or other interests in any fund, capital investment, savings, or reserve of each party to
             393      the merger or consolidation into stock, shares, or other securities or obligations of or certificates
             394      of interest, patronage refund certificates, or other interests in any fund, capital investment, savings
             395      or reserve of the surviving or new corporation, including any changes to be made in the time and
             396      manner of payment of the certificates or interests;
             397          (f) a statement electing whether the surviving or new corporation shall be governed by:


             398          (i) the Uniform Agricultural Cooperative Association Act; or [by]
             399          (ii) Title 16, Chapter [6] 6a, Utah Revised Nonprofit Corporation [and Cooperative
             400      Association] Act;
             401          (g) a statement of any changes in the articles of incorporation of the surviving or new
             402      corporation effected by the merger or consolidation, including changes required by the law
             403      governing the surviving or new corporation; and
             404          (h) any other provision relating to the proposed merger or consolidation considered to be
             405      necessary or desirable.
             406          Section 4. Section 3-1-44 is amended to read:
             407           3-1-44. Registered office and agent.
             408          (1) An association shall continuously maintain a registered office in this state. The
             409      registered office may be the principal place of business of the association.
             410          (2) (a) An association shall designate a registered agent.
             411          (b) The registered agent may be a person residing in this state, a domestic corporation, or
             412      a foreign corporation authorized to transact business in this state.
             413          (c) The registered agent's address shall be the same as that of the registered office.
             414          (3) (a) An association shall file a statement with the Division of Corporations and
             415      Commercial Code designating or changing its registered office, its registered agent, or both.
             416          (b) The statement in Subsection (3)(a) shall set forth:
             417          (i) the name of the association;
             418          (ii) the address of the association's registered office;
             419          (iii) the name of the association's registered agent and [his] the registered agent's address;
             420      and
             421          (iv) a statement that the designation or change was authorized by a resolution of the board
             422      of directors.
             423          (4) (a) A registered agent of an association may resign by filing with the division a signed
             424      written notice of resignation, including a statement that a signed copy of the notice has been given
             425      to the association at its principal place of business.
             426          (b) The appointment of the agent terminates 30 days after notice is filed with the division.
             427          (5) Service of process, notice, or any demand upon an association shall be made as
             428      provided in Section [ 16-6-25.3 ] 16-6a-504.


             429          Section 5. Section 7-5-2 is amended to read:
             430           7-5-2. Permit required to engage in trust business -- Exceptions.
             431          (1) No trust company shall accept any appointment to act in any agency or fiduciary
             432      capacity, such as but not limited to that of personal representative, executor, administrator,
             433      conservator, guardian, assignee, receiver, depositary, or trustee under order or judgment of any
             434      court or by authority of any law of this state or as trustee for any purpose permitted by law or
             435      otherwise engage in the trust business in this state, unless and until it has obtained from the
             436      commissioner a permit to act under this chapter. This provision shall not apply to any bank or other
             437      corporation authorized to engage and lawfully engaged in the trust business in this state before July
             438      1, 1981.
             439          (2) Nothing in this chapter prohibits:
             440          (a) any corporation organized under Title 16, Chapter [6] 6a or [10] 10a, from acting as
             441      trustee of any employee benefit trust established for the employees of the corporation or the
             442      employees of one or more other corporations affiliated with the corporation;
             443          (b) any corporation organized under Title 16, Chapter [6] 6a, Utah Revised Nonprofit
             444      Corporation Act, and owned or controlled by a charitable, benevolent, eleemosynary, or religious
             445      organization from acting as a trustee for that organization or members of that organization but not
             446      offering trust services to the general public;
             447          (c) any corporation organized under Title 16, Chapter [6] 6a or [10] 10a, from holding in
             448      a fiduciary capacity the controlling shares of another corporation but not offering trust services to
             449      the general public; or
             450          (d) any depository institution from holding in an agency or fiduciary capacity individual
             451      retirement accounts or Keogh plan accounts established under Section 401 (a) or 408 (a) of Title
             452      26 of the United States Code.
             453          Section 6. Section 9-13-201 is amended to read:
             454           9-13-201. Utah Technology Finance Corporation -- Independent public corporation.
             455          (1) There is created an independent public corporation known as the "Utah Technology
             456      Finance Corporation."
             457          (2) (a) The corporation shall operate as a nonprofit corporation in accordance with Title
             458      16, Chapter [6] 6a, Utah Revised Nonprofit Corporation [and Cooperative Association] Act, to the
             459      extent that Title 16, Chapter [6] 6a, does not conflict with this chapter.


             460          (b) The corporation shall file with the Division of Corporations and Commercial Code:
             461          (i) articles of incorporation; and
             462          (ii) any amendment to its articles of incorporation.
             463          (c) In addition to the articles of incorporation, the corporation may adopt bylaws and
             464      operational policies that are consistent with this chapter.
             465          (3) This chapter is a recodification of the repealed Title 9, Chapter 2, Part 7, Utah
             466      Technology Finance Corporation Act, and does not create a new corporation. The corporation
             467      referred to in this chapter is the ongoing enterprise of the Utah Technology Finance Corporation
             468      and this recodification does not impair any existing contractual relationships of the corporation.
             469          Section 7. Section 11-32-3 is amended to read:
             470           11-32-3. Creation of county interlocal finance authority as nonprofit corporation --
             471      Organization -- Acquisition of delinquent tax receivables -- Personnel -- Duties of elected
             472      attorney and treasurer.
             473          (1) The governing body of any county within the state may, by resolution, organize a
             474      nonprofit corporation as the financing authority for the county on behalf of public bodies within
             475      the county under this chapter, following the procedures set out in Title 16, Chapter [6] 6a, Utah
             476      Revised Nonprofit Corporation [and Cooperative Association] Act, solely for the purpose of
             477      accomplishing the public purposes for which the public bodies exist by financing the sale or
             478      assignment of the delinquent tax receivables within the county to the financing authority. The
             479      authority shall be known as the "Interlocal Finance Authority of (name of county)."
             480          (2) If the governing body of any county creates an authority on behalf of any other public
             481      body within the county, the resolution shall further state the name or names of the other public
             482      bodies. A certified copy of the resolution creating the authority shall be delivered to the governing
             483      body of the other public bodies. The governing bodies of each of the other public bodies shall
             484      either approve or reject the creation of the authority, but if no action has been taken within 30 days
             485      of delivery of the certified copy of the resolution to the governing body it shall be [deemed]
             486      considered rejected.
             487          (3) Following the approval, rejection, or [deemed] considered rejection of the resolution
             488      by the governing bodies of each of the public bodies listed in the initial resolution, the county shall
             489      then amend the resolution to delete the public bodies rejecting the resolution and shall list the
             490      participant members of the authority.


             491          (4) The governing bodies of the participant members shall approve the articles of
             492      incorporation and bylaws of the authority. Members of governing bodies of each of the participant
             493      members, or a paid employee of the governing body designated by the member, shall be selected
             494      to form and shall act as the board of trustees of the authority. The powers of the board of trustees
             495      may be vested in an executive committee to be selected from among the board of trustees by the
             496      members of the board of trustees. The articles of incorporation and bylaws shall provide that the
             497      members of the board of trustees of the authority may be removed and replaced by the governing
             498      body from which such member was selected at any time in its discretion. A majority of the
             499      governing bodies of the participant members, based upon a percentage of the property taxes levied
             500      for the year preceding the then current year, within the county may, alter or change the structure,
             501      organization, programs, or activities of the financing authority, subject to the rights of the holders
             502      of the authority's bonds and parties to its other obligations.
             503          (5) Each financing authority may acquire by assignment the delinquent tax receivables of
             504      the participant members creating the financing authority, in accordance with the procedures and
             505      subject to the limitations of this chapter, in order to accomplish the public purposes for which the
             506      participant members exist.
             507          (6) Except as limited by Subsection (7), a financing authority may contract for or employ
             508      all staff and other personnel necessary for the purpose of performing its functions and activities,
             509      including contracting with the participant members within the county that created it to utilize any
             510      of the personnel, property, or facilities of any of the participant members for that purpose. The
             511      authority may be reimbursed for such costs by the participant member as provided in its articles
             512      of incorporation or bylaws.
             513          (7) (a) With respect to any county that creates a financing authority and which has an
             514      elected attorney or treasurer, or both, the elected attorney shall be the legal advisor to and provide
             515      all legal services for the authority, and the elected treasurer shall provide all accounting services
             516      for the authority. The authority shall reimburse the county for legal and accounting services so
             517      furnished by the county, based upon the actual cost of the services, including reasonable amounts
             518      allocated by the county for overhead, employee fringe benefits, and general and administrative
             519      expenses.
             520          (b) The provisions of Subsection (7) may not prevent the financing authority from
             521      obtaining the accounting or auditing services from outside accountants or auditors with the consent


             522      of the elected treasurer and the governing bodies or from obtaining legal services from outside
             523      attorneys with the consent of the elected attorney and the governing bodies. The provisions of this
             524      subsection may not prevent the authority from obtaining the opinions of outside attorneys or
             525      accountants which are necessary for the issuance of the bonds of the authority.
             526          (c) If 50% or more of the governing bodies of the participant members, based upon
             527      property taxes charged for the preceding year as a percentage of all of the property taxes charged
             528      within the county for that year, find it advisable that the authority retain legal or accounting
             529      services other than as described in Subsection (7)(a) they may direct the board of trustees to do so.
             530          Section 8. Section 11-32-8 is amended to read:
             531           11-32-8. Dissolution of financing authority.
             532          (1) The governing body of a county may at any time dissolve a financing authority created
             533      by the county in the manner then provided in Title 16, Chapter [6] 6a, [the] Utah Revised
             534      Nonprofit Corporation [and Cooperative Association] Act, subject to the limitations of this
             535      chapter.
             536          (2) A financing authority may not be dissolved unless all outstanding bonds and other
             537      obligations of the authority are paid in full as to principal, interest, and redemption premiums, if
             538      any, or unless provision for the payment of them when due has been made.
             539          (3) Upon the dissolution of a financing authority all assets and moneys of the authority
             540      remaining after a provision has been made for the payment of all outstanding bonds and
             541      obligations of the authority shall be transferred to the participant members as described in Section
             542      11-32-15 or as agreed upon between the county and the other participant members.
             543          Section 9. Section 16-6a-101 is enacted to read:
             544     
CHAPTER 6a. UTAH REVISED NONPROFIT CORPORATION ACT

             545     
Part 1. General Provisions

             546          16-6a-101. Title.
             547          This chapter is known as the "Utah Revised Nonprofit Corporation Act."
             548          Section 10. Section 16-6a-102 is enacted to read:
             549          16-6a-102. Definitions.
             550          As used in this chapter:
             551          (1) (a) "Address" means a location where mail can be delivered by the United States Postal
             552      Service.


             553          (b) "Address" includes:
             554          (i) a post office box number;
             555          (ii) a rural free delivery route number; and
             556          (iii) a street name and number.
             557          (2) "Affiliate" means a person that directly or indirectly through one or more
             558      intermediaries controls, or is controlled by, or is under common control with, the person specified.
             559          (3) "Assumed corporate name" means the name assumed for use in this state:
             560          (a) by a:
             561          (i) foreign corporation pursuant to Section 16-10a-1506 ; or
             562          (ii) a foreign nonprofit corporation pursuant to Section 16-6a-1506 ; and
             563          (b) because the corporate name of the foreign corporation described in Subsection (3)(a)
             564      is not available for use in this state.
             565          (4) "Articles of incorporation" include:
             566          (a) amended articles of incorporation;
             567          (b) restated articles of incorporation;
             568          (c) articles of merger; and
             569          (d) a document of a similar import to the documents described in Subsection (4)(a) or (b).
             570          (5) (a) Except as provided in Subsection (5)(b), "board of directors" means the body
             571      authorized to manage the affairs of the domestic or foreign nonprofit corporation.
             572          (b) Notwithstanding Subsection (5)(a), a person may not be considered the board of
             573      directors because of powers delegated to that person pursuant to Subsection 16-6a-801 (2).
             574          (6) (a) "Bylaws" means the one or more codes of rules, other than the articles of
             575      incorporation, adopted pursuant to this chapter for the regulation or management of the affairs of
             576      the domestic or foreign nonprofit corporation irrespective of the name or names by which the
             577      codes of rules are designated.
             578          (b) "Bylaws" includes:
             579          (i) amended bylaws; and
             580          (ii) restated bylaws.
             581          (7) (a) "Cash" or "money" means:
             582          (i) legal tender;
             583          (ii) a negotiable instrument; or


             584          (iii) other cash equivalent readily convertible into legal tender.
             585          (b) "Cash" and "money" are used interchangeably in this chapter.
             586          (8) (a) "Class" refers to a group of memberships that have the same rights with respect to
             587      voting, dissolution, redemption, transfer, or other characteristics.
             588          (b) For purposes of Subsection (8)(a), rights are considered the same if they are determined
             589      by a formula applied uniformly to a group of memberships.
             590          (9) (a) "Conspicuous" means so written that a reasonable person against whom the writing
             591      is to operate should have noticed it.
             592          (b) "Conspicuous" includes printing or typing in:
             593          (i) italics;
             594          (ii) boldface;
             595          (iii) contrasting color;
             596          (iv) capitals; or
             597          (v) underlining.
             598          (10) "Control" or a "controlling interest" means the direct or indirect possession of the
             599      power to direct or cause the direction of the management and policies of an entity by:
             600          (a) the ownership of voting shares;
             601          (b) contract; or
             602          (c) means other than those specified in Subsection (10)(a) or (b).
             603          (11) "Cooperative nonprofit corporation" or "cooperative" means a nonprofit corporation
             604      organized or existing under this chapter subject to Section 16-6a-207 .
             605          (12) "Corporate name" means:
             606          (a) the name of a domestic corporation as stated in the domestic corporation's articles of
             607      incorporation;
             608          (b) the name of a domestic nonprofit corporation as stated in the domestic nonprofit
             609      corporation's articles of incorporation;
             610          (c) the name of a foreign corporation as stated in the foreign corporation's:
             611          (i) articles of incorporation; or
             612          (ii) document of similar import to articles of incorporation; or
             613          (d) the name of a foreign nonprofit corporation as stated in the foreign nonprofit
             614      corporation's:


             615          (i) articles of incorporation; or
             616          (ii) document of similar import to articles of incorporation.
             617          (13) "Corporation" or "domestic corporation" means a corporation for profit, which is not
             618      a foreign corporation, incorporated under or subject to Chapter 10a, Utah Revised Business
             619      Corporation Act.
             620          (14) "Delegate" means any person elected or appointed to vote in a representative
             621      assembly:
             622          (a) for the election of a director; or
             623          (b) on matters other than the election of a director.
             624          (15) "Deliver" includes delivery by mail and any other means of transmission authorized
             625      by Section 16-6a-103 , except that delivery to the division means actual receipt by the division.
             626          (16) "Director" means a member of the board of directors.
             627          (17) (a) "Distribution" means the payment of a dividend or any part of the income or profit
             628      of a nonprofit corporation to the nonprofit corporation's:
             629          (i) members;
             630          (ii) directors; or
             631          (iii) officers.
             632          (b) "Distribution" does not include fair-value payments for:
             633          (i) goods sold; or
             634          (ii) services received.
             635          (18) "Division" means the Division of Corporations and Commercial Code.
             636          (19) "Effective date," when referring to a document filed by the division, means the time
             637      and date determined in accordance with Section 16-6a-108 .
             638          (20) "Effective date of notice" means the date notice is effective as provided in Section
             639      16-6a-103 .
             640          (21) (a) "Employee" includes an officer but not a director of a nonprofit corporation.
             641          (b) Notwithstanding Subsection (21)(a), a director may accept duties that make that
             642      director an employee of a nonprofit corporation.
             643          (22) "Executive director" means the executive director of the Department of Commerce.
             644          (23) "Entity" includes:
             645          (a) a domestic or foreign corporation;


             646          (b) a domestic or foreign nonprofit corporation;
             647          (c) a limited liability company;
             648          (d) a profit or nonprofit unincorporated association;
             649          (e) a business trust;
             650          (f) an estate;
             651          (g) a partnership;
             652          (h) a trust;
             653          (i) two or more persons having a joint or common economic interest;
             654          (j) a state;
             655          (k) the United States; or
             656          (l) a foreign government.
             657          (24) "Foreign corporation" means a corporation for profit incorporated under a law other
             658      than the laws of this state.
             659          (25) "Foreign nonprofit corporation" means an entity:
             660          (a) incorporated under a law other than the laws of this state; and
             661          (b) that would be a nonprofit corporation if formed under the laws of this state.
             662          (26) "Governmental subdivision" means:
             663          (a) a county;
             664          (b) a city;
             665          (c) a town; or
             666          (d) any other type of governmental subdivision authorized by the laws of this state.
             667          (27) "Individual" means:
             668          (a) a natural person;
             669          (b) the estate of an incompetent individual; or
             670          (c) the estate of a deceased individual.
             671          (28) "Internal Revenue Code" means the federal "Internal Revenue Code of 1986," as
             672      amended from time to time, or to corresponding provisions of subsequent internal revenue laws
             673      of the United States of America.
             674          (29) (a) "Mail," "mailed," or "mailing" means deposit, deposited, or depositing in the
             675      United States mail, properly addressed, first-class postage prepaid.
             676          (b) "Mail," "mailed," or "mailing" includes registered or certified mail for which the proper


             677      fee has been paid.
             678          (30) (a) "Member" means one or more persons identified as a member of a domestic or
             679      foreign nonprofit corporation in the articles of incorporation or bylaws of the nonprofit corporation
             680      pursuant to a procedure set forth:
             681          (i) in the articles of incorporation;
             682          (ii) in the bylaws; or
             683          (iii) by a resolution of the board of directors.
             684          (b) "Member" includes "voting member."
             685          (31) "Membership" refers to the rights and obligations of a member or members.
             686          (32) "Nonprofit corporation" or "domestic nonprofit corporation" means an entity, which
             687      is not a foreign nonprofit corporation, incorporated under or subject to the provisions of this
             688      chapter.
             689          (33) "Notice" is as provided in Section 16-6a-103 .
             690          (34) "Person" means an:
             691          (a) individual; or
             692          (b) entity.
             693          (35) "Principal office" means:
             694          (a) the office, in or out of this state, designated by a domestic or foreign nonprofit
             695      corporation as its principal office in the most recent document on file with the division providing
             696      that information, including:
             697          (i) an annual report;
             698          (ii) an application for a certificate of authority; or
             699          (iii) a notice of change of principal office; or
             700          (b) if no principal office can be determined, a domestic or foreign nonprofit corporation's
             701      registered office.
             702          (36) "Proceeding" includes:
             703          (a) a civil suit;
             704          (b) arbitration;
             705          (c) mediation;
             706          (d) a criminal action;
             707          (e) an administrative action; or


             708          (f) an investigatory action.
             709          (37) "Receive," when used in reference to receipt of a writing or other document by a
             710      domestic or foreign nonprofit corporation, means the writing or other document is actually
             711      received:
             712          (a) by the domestic or foreign nonprofit corporation at:
             713          (i) its registered office in this state; or
             714          (ii) its principal office;
             715          (b) by the secretary of the domestic or foreign nonprofit corporation, wherever the
             716      secretary is found; or
             717          (c) by any other person authorized by the bylaws or the board of directors to receive the
             718      writing or other document, wherever that person is found.
             719          (38) (a) "Record date" means the date established under Part 6 or 7 on which a nonprofit
             720      corporation determines the identity of its members.
             721          (b) The determination described in Subsection (38)(a) shall be made as of the close of
             722      business on the record date unless another time for doing so is specified when the record date is
             723      fixed.
             724          (39) "Registered agent" means the registered agent of:
             725          (a) a domestic nonprofit corporation required to be maintained pursuant to Subsection
             726      16-6a-501 (1)(b); or
             727          (b) a foreign nonprofit corporation required to be maintained pursuant to Subsection
             728      16-6a-1508 (1)(b).
             729          (40) "Registered office" means the office within this state designated by a domestic or
             730      foreign nonprofit corporation as its registered office in the most recent document on file with the
             731      division providing that information, including:
             732          (a) articles of incorporation;
             733          (b) an application for a certificate of authority; or
             734          (c) a notice of change of registered office.
             735          (41) "Related party to a director" means:
             736          (a) the spouse of the director;
             737          (b) a child of the director;
             738          (c) a grandchild of the director;


             739          (d) a sibling of the director;
             740          (e) a parent of the director;
             741          (f) the spouse of an individual described in Subsections (41)(b) through (e);
             742          (g) an individual having the same home as the director;
             743          (h) a trust or estate of which the director or any other individual specified in this
             744      Subsection (41) is a substantial beneficiary; or
             745          (i) any of the following of which the director is a fiduciary:
             746          (i) a trust;
             747          (ii) an estate;
             748          (iii) an incompetent;
             749          (iv) a conservatee; or
             750          (v) a minor.
             751          (42) "Secretary" means the corporate officer to whom the bylaws or the board of directors
             752      has delegated responsibility under Subsection 16-6a-818 (3) for:
             753          (a) the preparation and maintenance of:
             754          (i) minutes of the meetings of:
             755          (A) the board of directors; or
             756          (B) the members; and
             757          (ii) the other records and information required to be kept by the nonprofit corporation
             758      pursuant to Section 16-6a-1601 ; and
             759          (b) authenticating records of the nonprofit corporation.
             760          (43) "State," when referring to a part of the United States, includes:
             761          (a) a state;
             762          (b) a commonwealth;
             763          (c) the District of Columbia;
             764          (d) an agency or governmental and political subdivision of a state, commonwealth, or
             765      District of Columbia;
             766          (e) territory or insular possession of the United States; or
             767          (f) an agency or governmental and political subdivision of a territory or insular possession
             768      of the United States.
             769          (44) "Street address" means:


             770          (a) (i) street name and number;
             771          (ii) city or town; and
             772          (iii) United States post office zip code designation; or
             773          (b) if, by reason of rural location or otherwise, a street name, number, city, or town does
             774      not exist, an appropriate description other than that described in Subsection (44)(a) fixing as nearly
             775      as possible the actual physical location but only if the information includes:
             776          (i) the rural free delivery route;
             777          (ii) the county; and
             778          (iii) the United States post office zip code designation.
             779          (45) "United States" includes any district, authority, office, bureau, commission,
             780      department, and any other agency of the United States of America.
             781          (46) "Vote" includes authorization by:
             782          (a) written ballot; and
             783          (b) written consent.
             784          (47) (a) "Voting group" means all the members of one or more classes of members or
             785      directors that, under this chapter, the articles of incorporation, or the bylaws, are entitled to vote
             786      and be counted together collectively on a matter.
             787          (b) All members or directors entitled by this chapter, the articles of incorporation, or the
             788      bylaws to vote generally on a matter are for that purpose a single voting group.
             789          (48) (a) "Voting member" means one or more persons who are entitled to vote for all
             790      matters required or permitted under this chapter to be submitted to a vote of the members, except
             791      as otherwise provided in the articles of incorporation or bylaws.
             792          (b) A person is not a voting member solely because of:
             793          (i) a right the person has as a delegate;
             794          (ii) a right the person has to designate a director; or
             795          (iii) a right the person has as a director.
             796          Section 11. Section 16-6a-103 is enacted to read:
             797          16-6a-103. Notice.
             798          (1) Notice given under this chapter shall be in writing unless oral notice is reasonable
             799      under the circumstances.
             800          (2) (a) Notice may be communicated:


             801          (i) in person;
             802          (ii) by telephone;
             803          (iii) by any form of electronic communication; or
             804          (iv) by mail or private carrier.
             805          (b) If the forms of personal notice described in Subsection (2)(a) are impracticable, notice
             806      may be communicated by:
             807          (i) a newspaper of general circulation in the county or similar governmental subdivision
             808      in which the corporation's principal or registered office is located; or
             809          (ii) radio, television, or other form of public broadcast communication in the county or
             810      similar governmental subdivision in which the corporation's principal or registered office is
             811      located.
             812          (3) Written notice to a domestic or foreign nonprofit corporation authorized to conduct
             813      affairs in this state may be addressed to:
             814          (a) its registered agent at its registered office; or
             815          (b) the corporation's secretary at its principal office.
             816          (4) (a) Written notice by a domestic or foreign nonprofit corporation to its members, is
             817      effective as to each member when mailed, if:
             818          (i) in a comprehensible form; and
             819          (ii) addressed to the member's address shown in the domestic or foreign nonprofit
             820      corporation's current record of members.
             821          (b) If three successive notices given to a member pursuant to Subsection (5) have been
             822      returned as undeliverable, further notices to that member are not necessary until another address
             823      of the member is made known to the nonprofit corporation.
             824          (5) Except as provided in Subsection (4), written notice, if in a comprehensible form, is
             825      effective at the earliest of the following:
             826          (a) when received;
             827          (b) five days after it is mailed; or
             828          (c) on the date shown on the return receipt if:
             829          (i) sent by registered or certified mail;
             830          (ii) sent return receipt requested; and
             831          (iii) the receipt is signed by or on behalf of the addressee.


             832          (6) Oral notice is effective when communicated if communicated in a comprehensible
             833      manner.
             834          (7) Notice by publication is effective on the date of first publication.
             835          (8) A written notice or report delivered as part of a newsletter, magazine, or other
             836      publication regularly sent to members shall constitute a written notice or report if:
             837          (a) addressed or delivered to the member's address shown in the nonprofit corporation's
             838      current list of members; or
             839          (b) if two or more members are residents of the same household and have the same address
             840      in the nonprofit corporation's current list of members, addressed or delivered to one of the
             841      members at the address appearing on the current list of members.
             842          (9) (a) If this chapter prescribes notice requirements for particular circumstances, the
             843      notice requirements for the particular circumstances govern.
             844          (b) If articles of incorporation or bylaws prescribe notice requirements not inconsistent
             845      with this section or other provisions of this chapter, the notice requirements of the articles of
             846      incorporation or bylaws govern.
             847          Section 12. Section 16-6a-104 is enacted to read:
             848          16-6a-104. Powers of the division.
             849          The division has the power reasonably necessary to perform the duties required of the
             850      division under this chapter.
             851          Section 13. Section 16-6a-105 is enacted to read:
             852          16-6a-105. Filing requirements.
             853          (1) To be entitled to filing by the division, a document shall satisfy the requirements of:
             854          (a) this section; and
             855          (b) any other section of this chapter that adds to or varies the requirements of this section.
             856          (2) This chapter shall require or permit filing the document with the division.
             857          (3) (a) A document shall contain the information required by this chapter.
             858          (b) In addition to the document information required by this chapter, it may contain other
             859      information.
             860          (4) A document shall be:
             861          (a) typewritten; or
             862          (b) machine printed.


             863          (5) (a) A document shall be in the English language.
             864          (b) A corporate name need not be in English if written in:
             865          (i) English letters; or
             866          (ii) Arabic or Roman numerals.
             867          (c) Notwithstanding Subsection (5)(a), a certificate of existence required of a foreign
             868      nonprofit corporation need not be in English if accompanied by a reasonably authenticated English
             869      translation.
             870          (6) (a) A document shall be:
             871          (i) executed by a person in Subsection (6)(b); or
             872          (ii) a true copy made by photographic, xerographic, electronic, or other process that
             873      provides similar copy accuracy of a document that has been executed by a person listed in
             874      Subsection (6)(b).
             875          (b) A document shall be executed by:
             876          (i) the chair of the board of directors of a domestic or foreign nonprofit corporation;
             877          (ii) all of the directors of a domestic or foreign nonprofit corporation;
             878          (iii) an officer of the domestic or foreign nonprofit corporation;
             879          (iv) if directors have not been selected or the domestic or foreign nonprofit corporation has
             880      not been formed, an incorporator;
             881          (v) if the domestic or foreign nonprofit corporation is in the hands of a receiver, trustee,
             882      or other court-appointed fiduciary, that receiver, trustee, or court-appointed fiduciary; or
             883          (vi) if the document is that of a registered agent:
             884          (A) the registered agent, if the person is an individual; or
             885          (B) a person authorized by the registered agent to execute the document, if the registered
             886      agent is an entity.
             887          (7) A document shall state beneath or opposite the signature of the person executing the
             888      document:
             889          (a) the signer's name; and
             890          (b) the capacity in which the document is signed.
             891          (8) A document may contain:
             892          (a) the corporate seal;
             893          (b) an attestation by the secretary or an assistant secretary; or


             894          (c) an acknowledgment, verification, or proof.
             895          (9) The signature of each person signing a document, whether or not the document
             896      contains an acknowledgment, verification, or proof permitted by Subsection (8), shall constitute
             897      the affirmation or acknowledgment of the person, under penalties of perjury, that:
             898          (a) the document is:
             899          (i) the person's act and deed; or
             900          (ii) the act and deed of the entity on behalf of which the document is executed; and
             901          (b) the facts stated in the document are true.
             902          (10) If the division has prescribed a mandatory form or cover sheet for the document under
             903      Section 16-6a-106 , a document shall be:
             904          (a) in or on the prescribed form; or
             905          (b) have the required cover sheet.
             906          (11) A document shall be:
             907          (a) delivered to the division for filing; and
             908          (b) accompanied by:
             909          (i) one exact or conformed copy, except as provided in Sections 16-6a-503 and
             910      16-6a-1510 ;
             911          (ii) the correct filing fee; and
             912          (iii) any franchise tax, license fee, or penalty required by this chapter or other law.
             913          (12) Except with respect to filings pursuant to Section 16-6a-503 or 16-6a-1510 , a
             914      document shall state, or be accompanied by a writing stating, the address to which the division may
             915      send a copy upon completion of the filing.
             916          Section 14. Section 16-6a-106 is enacted to read:
             917          16-6a-106. Forms.
             918          (1) (a) The division may prescribe forms or cover sheets for documents required or
             919      permitted to be filed by this chapter.
             920          (b) If the division prescribes a form or cover sheet pursuant to Subsection (1)(a), the
             921      division shall provide the form or cover sheet on request.
             922          (2) Notwithstanding Subsection (1):
             923          (a) the use of a form or cover sheet is not mandatory unless the division specifically
             924      requires the use of the form or cover sheet; and


             925          (b) a requirement that a form or cover sheet be used may not:
             926          (i) preclude in any way the inclusion in any document of any item that is not prohibited to
             927      be included by this chapter; or
             928          (ii) require the inclusion with the filed document of any item that is not otherwise required
             929      by this chapter.
             930          Section 15. Section 16-6a-107 is enacted to read:
             931          16-6a-107. Fees.
             932          (1) Unless otherwise provided by statute, the division shall charge and collect a fee for
             933      services established by the division in accordance with Section 63-38-3.2 including fees:
             934          (a) for furnishing a certified copy of any document, instrument, or paper relating to a
             935      domestic or foreign nonprofit corporation; and
             936          (b) for the certificate and affixing the seal to a certified copy described in Subsection
             937      (1)(a).
             938          (2) (a) The division shall provide expedited, 24-hour processing of any item under this
             939      section upon request.
             940          (b) The division shall charge and collect additional fees established by the division in
             941      accordance with Section 63-38-3.2 for expedited service provided under Subsection (2)(a).
             942          (3) (a) The division shall charge and collect a fee determined by the division in accordance
             943      with Section 63-38-3.2 at the time of any service of process on the director of the division as
             944      resident agent of a corporation.
             945          (b) The fee paid under Subsection (3)(a) may be recovered as taxable costs by the party
             946      to the suit or action causing the service to be made if the party prevails in the suit or action.
             947          Section 16. Section 16-6a-108 is enacted to read:
             948          16-6a-108. Effective time and date of filed documents.
             949          (1) (a) Except as provided in Subsection (2) and Subsection 16-6a-109 (4), a document
             950      submitted to the division for filing under this chapter is effective:
             951          (i) at the time of filing; and
             952          (ii) on the date it is filed.
             953          (b) The division's endorsement on the document as described in Subsection 16-6a-110 (2)
             954      is evidence of the time and date of filing.
             955          (2) (a) Unless otherwise provided in this chapter, a document, other than an application


             956      for a reserved or registered name, may specify conspicuously on its face:
             957          (i) a delayed effective time;
             958          (ii) a delayed effective date; or
             959          (iii) both a delayed effective time and date.
             960          (b) If in accordance with Subsection (2)(a), a delayed time, date, or both, is specified, the
             961      document becomes effective as provided in this Subsection (2).
             962          (c) If both a delayed effective time and date are specified, the document becomes effective
             963      as specified.
             964          (d) If a delayed effective time but no date is specified, the document is effective on the
             965      date it is filed, as that date is specified in the division's time and date endorsement on the
             966      document, at the later of:
             967          (i) the time specified on the document as its effective time; or
             968          (ii) the time specified in the time and date endorsement.
             969          (e) If a delayed effective date but no time is specified, the document is effective at the
             970      close of business on the date specified as the delayed effective date.
             971          (f) Notwithstanding the other provisions of this Subsection (2), a delayed effective date
             972      for a document may not be later than 90 days after the date the document is filed. If a document
             973      specifies a delayed effective date that is more than 90 days after the date the document is filed, the
             974      document is effective 90 days after the day the document is filed.
             975          (3) If a document specifies a delayed effective date pursuant to Subsection (2), the
             976      document may be prevented from becoming effective by the same domestic or foreign nonprofit
             977      corporation that originally submitted the document for filing delivering to the division, prior to the
             978      specified effective date of the document, a certificate of withdrawal:
             979          (a) executed:
             980          (i) on behalf of the same domestic or foreign nonprofit corporation that originally
             981      submitted the document for filing; and
             982          (ii) in the same manner as the document being withdrawn;
             983          (b) stating that:
             984          (i) the document has been revoked by:
             985          (A) appropriate corporate action; or
             986          (B) court order or decree pursuant to Section 16-6a-1007 ; and


             987          (ii) the document is void; and
             988          (c) if a court order or decree pursuant to Section 16-6a-1007 revokes the document, the
             989      court order or decree was entered by a court having jurisdiction of the proceeding for the
             990      reorganization of the nonprofit corporation under a specified statute of the United States.
             991          Section 17. Section 16-6a-109 is enacted to read:
             992          16-6a-109. Correcting filed documents.
             993          (1) A domestic or foreign nonprofit corporation may correct a document filed with the
             994      division if the document:
             995          (a) contains an incorrect statement; or
             996          (b) was defectively executed, attested, sealed, verified, or acknowledged.
             997          (2) A document is corrected by delivering to the division for filing articles of correction
             998      that:
             999          (a) (i) describe the document, including its filing date; or
             1000          (ii) have attached a copy of the document;
             1001          (b) specify:
             1002          (i) (A) the incorrect statement; and
             1003          (B) the reason it is incorrect; or
             1004          (ii) the manner in which the execution, attestation, sealing, verification, or
             1005      acknowledgment was defective; and
             1006          (c) correct:
             1007          (i) the incorrect statement; or
             1008          (ii) defective execution, attestation, sealing, verification, or acknowledgment.
             1009          (3) Articles of correction may be executed by any person:
             1010          (a) designated in Subsection 16-6a-105 (6); or
             1011          (b) who executed the document that is corrected.
             1012          (4) (a) Articles of correction are effective on the effective date of the document they
             1013      correct except as to a person:
             1014          (i) relying on the uncorrected document; and
             1015          (ii) adversely affected by the correction.
             1016          (b) As to a person described in Subsection (4)(a), the articles of correction are effective
             1017      when filed.


             1018          Section 18. Section 16-6a-110 is enacted to read:
             1019          16-6a-110. Filing duty of division.
             1020          (1) If a document delivered to the division for filing satisfies the requirements of Section
             1021      16-6a-105 , the division shall file the document.
             1022          (2) (a) The division files a document by stamping or otherwise endorsing "Filed" together
             1023      with the name of the division and the date and time of acceptance for filing on both the document
             1024      and the accompanying copy.
             1025          (b) After filing a document, except as provided in Sections 16-6a-503 , 16-6a-1510 , and
             1026      16-6a-1608 , the division shall deliver the accompanying copy, with the receipt for any filing fees:
             1027          (i) (A) to the domestic or foreign nonprofit corporation for which the filing is made; or
             1028          (B) to the representative of the domestic or foreign nonprofit corporation for which the
             1029      filing is made; and
             1030          (ii) at the address:
             1031          (A) indicated on the filing; or
             1032          (B) that the division determines to be appropriate.
             1033          (3) If the division refuses to file a document, the division within ten days after the day the
             1034      document is delivered to the division shall return to the person requesting the filing:
             1035          (a) the document; and
             1036          (b) a written notice providing a brief explanation of the reason for the refusal to file.
             1037          (4) (a) The division's duty to file a document under this section is ministerial.
             1038          (b) Except as otherwise specifically provided in this chapter, the division's filing or refusal
             1039      to file a document does not:
             1040          (i) affect the validity or invalidity of the document in whole or in part;
             1041          (ii) relate to the correctness or incorrectness of information contained in the document; or
             1042          (iii) create a presumption that:
             1043          (A) the document is valid or invalid; or
             1044          (B) information contained in the document is correct or incorrect.
             1045          Section 19. Section 16-6a-111 is enacted to read:
             1046          16-6a-111. Appeal from division's refusal to file document.
             1047          If the division refuses to file a document delivered to it for filing, in accordance with Title
             1048      63, Chapter 46b, Administrative Procedures Act, the following may appeal the refusal to the


             1049      executive director:
             1050          (1) the domestic or foreign nonprofit corporation for which the filing was requested; or
             1051          (2) the representative of the domestic or foreign nonprofit corporation for which filing was
             1052      requested.
             1053          Section 20. Section 16-6a-112 is enacted to read:
             1054          16-6a-112. Evidentiary effect of copy of filed document.
             1055          One or more of the following is conclusive evidence that the original document has been
             1056      filed with the division:
             1057          (1) a certificate attached to a copy of a document filed by the division; or
             1058          (2) an endorsement, seal, or stamp placed on the copy by the division.
             1059          Section 21. Section 16-6a-113 is enacted to read:
             1060          16-6a-113. Certificates issued by the division.
             1061          (1) Any person may apply to the division for:
             1062          (a) a certificate of existence for a domestic nonprofit corporation;
             1063          (b) a certificate of authorization for a foreign nonprofit corporation; or
             1064          (c) a certificate that sets forth any facts of record in the division.
             1065          (2) A certificate of existence or certificate of authorization sets forth:
             1066          (a) (i) the domestic nonprofit corporation's corporate name; or
             1067          (ii) the foreign nonprofit corporation's corporate name registered in this state;
             1068          (b) that:
             1069          (i) (A) (I) the domestic nonprofit corporation is incorporated under the law of this state;
             1070      and
             1071          (II) the date of its incorporation; or
             1072          (B) the foreign nonprofit corporation is authorized to conduct affairs in this state;
             1073          (c) that all fees, taxes, and penalties owed to this state have been paid, if:
             1074          (i) payment is reflected in the records of the division; and
             1075          (ii) nonpayment affects the existence or authorization of the domestic or foreign nonprofit
             1076      corporation;
             1077          (d) that the domestic or foreign nonprofit corporation's most recent annual report required
             1078      by Section 16-6a-1607 has been filed by the division;
             1079          (e) that articles of dissolution have not been filed by the division; and


             1080          (f) other facts of record in the division that may be requested by the applicant.
             1081          (3) Subject to any qualification stated in the certificate, a certificate issued by the division
             1082      may be relied upon as conclusive evidence of the facts set forth in the certificate.
             1083          Section 22. Section 16-6a-114 is enacted to read:
             1084          16-6a-114. Penalty for signing false documents.
             1085          (1) It is unlawful for a person to sign a document:
             1086          (a) knowing it to be false in any material respect; and
             1087          (b) with intent that the document be delivered to the division for filing.
             1088          (2) An offense under this section is a class A misdemeanor punishable by a fine not to
             1089      exceed the fine specified in Section 76-3-301 .
             1090          Section 23. Section 16-6a-115 is enacted to read:
             1091          16-6a-115. Liability to third parties.
             1092          The directors, officers, employees, and members of a nonprofit corporation are not
             1093      personally liable in their capacity as directors, officers, employees, and members for the acts,
             1094      debts, liabilities, or obligations of a nonprofit corporation.
             1095          Section 24. Section 16-6a-116 is enacted to read:
             1096          16-6a-116. Private foundations.
             1097          Except as otherwise specified in the articles of incorporation, a nonprofit corporation that
             1098      is a private foundation as defined in Section 509(a), Internal Revenue Code:
             1099          (1) shall make distributions for each taxable year at the time and in the manner as not to
             1100      subject the nonprofit corporation to tax under Section 4942, Internal Revenue Code;
             1101          (2) may not engage in any act of self-dealing as defined in Section 4941(d), Internal
             1102      Revenue Code;
             1103          (3) may not retain any excess business holdings as defined in Section 4943(c), Internal
             1104      Revenue Code;
             1105          (4) may not make any investments that would subject the nonprofit corporation to taxation
             1106      under Section 4944, Internal Revenue Code; and
             1107          (5) may not make any taxable expenditures as defined in Section 4945(d), Internal
             1108      Revenue Code.
             1109          Section 25. Section 16-6a-117 is enacted to read:
             1110          16-6a-117. Judicial relief.


             1111          (1) (a) A director, officer, delegate, or member may petition the applicable district court
             1112      to take an action provided in Subsection (1)(b) if for any reason it is impractical or impossible for
             1113      a nonprofit corporation in the manner prescribed by this chapter, its articles of incorporation, or
             1114      bylaws to:
             1115          (i) call or conduct a meeting of its members, delegates, or directors; or
             1116          (ii) otherwise obtain the consent of its members, delegates, or directors.
             1117          (b) If a petition is filed under Subsection (1)(a), the applicable district court, in the manner
             1118      it finds fair and equitable under the circumstances, may order that:
             1119          (i) a meeting be called; or
             1120          (ii) a written consent or other form of obtaining the vote of members, delegates, or
             1121      directors be authorized.
             1122          (c) For purposes of this section, the applicable district court is:
             1123          (i) the district court of the county in this state where the nonprofit corporation's principal
             1124      office is located; or
             1125          (ii) if the nonprofit corporation has no principal office in this state:
             1126          (A) the district court of the county in which the registered office is located; or
             1127          (B) if the nonprofit corporation has no registered office in this state, the district court in
             1128      and for Salt Lake County.
             1129          (2) (a) A court specified in Subsection (1) shall, in an order issued pursuant to this section,
             1130      provide for a method of notice reasonably designed to give actual notice to all persons who would
             1131      be entitled to notice of a meeting held pursuant to this chapter, the articles of incorporation, or
             1132      bylaws.
             1133          (b) The method of notice described in Subsection (1) complies with this section whether
             1134      or not the method of notice:
             1135          (i) results in actual notice to all persons described in Subsection (2)(a); or
             1136          (ii) conforms to the notice requirements that would otherwise apply.
             1137          (c) In a proceeding under this section, the court may determine who are the members or
             1138      directors of a nonprofit corporation.
             1139          (3) An order issued pursuant to this section may dispense with any requirement relating
             1140      to the holding of or voting at meetings or obtaining votes that would otherwise be imposed by this
             1141      chapter, the articles of incorporation, or bylaws, including any requirement as to:


             1142          (a) quorums; or
             1143          (b) the number or percentage of votes needed for approval.
             1144          (4) (a) Whenever practical, any order issued pursuant to this section shall limit the subject
             1145      matter of a meeting or other form of consent authorized to items the resolution of which will or
             1146      may enable the nonprofit corporation to continue managing its affairs without further resort to this
             1147      section, including amendments to the articles of incorporation or bylaws.
             1148          (b) Notwithstanding Subsection (4)(a), an order under this section may authorize the
             1149      obtaining of whatever votes and approvals are necessary for the dissolution, merger, or sale of
             1150      assets of a nonprofit corporation.
             1151          (5) A meeting or other method of obtaining the vote of members, delegates, or directors
             1152      conducted pursuant to and that complies with an order issued under this section:
             1153          (a) is for all purposes a valid meeting or vote, as the case may be; and
             1154          (b) shall have the same force and effect as if it complied with every requirement imposed
             1155      by this chapter, the articles of incorporation, or bylaws.
             1156          (6) In addition to a meeting held under this section, a court-ordered meeting may be held
             1157      pursuant to Section 16-6a-703 .
             1158          Section 26. Section 16-6a-118 is enacted to read:
             1159          16-6a-118. Electronic documents.
             1160          (1) Notwithstanding the other requirements of this chapter except subject to Section
             1161      16-6a-106 , the division may by rule permit a writing required or permitted to be filed with the
             1162      division under this chapter:
             1163          (a) to be delivered, mailed, or filed:
             1164          (i) in an electronic medium; or
             1165          (ii) by electronic transmission; or
             1166          (b) to be signed by photographic, electronic, or other means prescribed by rule, except that
             1167      a writing signed in an electronic medium shall be signed by digital signature in accordance with
             1168      Title 46, Chapter 3, Utah Digital Signature Act.
             1169          (2) The division may by rule provide for any writing required or permitted to be prepared,
             1170      delivered, or mailed by the division under this chapter to be prepared, delivered, or mailed:
             1171          (a) in an electronic medium; or
             1172          (b) by electronic transmission.


             1173          Section 27. Section 16-6a-201 is enacted to read:
             1174     
Part 2. Incorporation

             1175          16-6a-201. Incorporators.
             1176          (1) One or more persons may act as incorporators of a nonprofit corporation by delivering
             1177      to the division for filing articles of incorporation meeting the requirements of Section 16-6a-202 .
             1178          (2) An incorporator who is a natural person shall be 18 years of age or older.
             1179          Section 28. Section 16-6a-202 is enacted to read:
             1180          16-6a-202. Articles of incorporation.
             1181          (1) The articles of incorporation shall set forth:
             1182          (a) one or more purposes for which the nonprofit corporation is organized;
             1183          (b) a corporate name for the nonprofit corporation that satisfies the requirements of Section
             1184      16-6a-401 ;
             1185          (c) the street address of the nonprofit corporation's initial registered office;
             1186          (d) the name and signature of its initial registered agent at the office listed in Subsection
             1187      (1)(c), which registered agent shall meet the requirements of Section 16-6a-501 ;
             1188          (e) the name and address of each incorporator;
             1189          (f) whether or not the nonprofit corporation will have voting members;
             1190          (g) if the nonprofit corporation is to issue shares of stock evidencing membership in the
             1191      nonprofit corporation or interests in water or other property rights:
             1192          (i) the aggregate number of shares that the nonprofit corporation has authority to issue; and
             1193          (ii) if the shares are to be divided into classes:
             1194          (A) the number of shares of each class;
             1195          (B) the designation of each class; and
             1196          (C) a statement of the preferences, limitations, and relative rights of the shares of each
             1197      class; and
             1198          (h) provisions not inconsistent with law regarding the distribution of assets on dissolution.
             1199          (2) The articles of incorporation may but need not set forth:
             1200          (a) the names and addresses of the one or more individuals who are to serve as the initial
             1201      directors;
             1202          (b) provisions not inconsistent with law regarding:
             1203          (i) managing the business and regulating the affairs of the nonprofit corporation;


             1204          (ii) defining, limiting, and regulating the powers of:
             1205          (A) the nonprofit corporation;
             1206          (B) the board of directors of the nonprofit corporation; and
             1207          (C) the members of the nonprofit corporation or any class of members;
             1208          (iii) whether cumulative voting will be permitted; and
             1209          (iv) the characteristics, qualifications, rights, limitations, and obligations attaching to each
             1210      or any class of members; and

             1211          (c) any provision that under this chapter is permitted to be in the articles of incorporation
             1212      or required or permitted to be set forth in the bylaws, including elective provisions that in
             1213      accordance with this chapter shall be included in the articles of incorporation to be effective.

             1214          (3) (a) It is sufficient under Subsection (1)(a) to state, either alone or with other purposes,
             1215      that the purpose of the corporation is to engage in any lawful act for which a nonprofit corporation
             1216      may be organized under this chapter.

             1217          (b) If the articles of incorporation include the statement described in Subsection (3)(a), all
             1218      lawful acts and activities shall be within the purposes of the nonprofit corporation, except for
             1219      express limitations, if any.
             1220          (4) The articles of incorporation need not set forth any corporate power enumerated in this
             1221      chapter.

             1222          (5) The articles of incorporation shall:
             1223          (a) be signed by each incorporator; and
             1224          (b) meet the filing requirements of Section 16-6a-105 .
             1225          (6) The appointment of the registered agent shall be signed by the registered agent on:
             1226          (a) the articles of incorporation; or
             1227          (b) an acknowledgment attached to the articles of incorporation.
             1228          (7) (a) If this chapter conditions any matter upon the presence of a provision in the bylaws,
             1229      the condition is satisfied if the provision is present either:
             1230          (i) in the articles of incorporation; or
             1231          (ii) the bylaws.
             1232          (b) If this chapter conditions any matter upon the absence of a provision in the bylaws, the
             1233      condition is satisfied only if the provision is absent from both:
             1234          (i) the articles of incorporation; and


             1235          (ii) the bylaws.
             1236          Section 29. Section 16-6a-203 is enacted to read:
             1237          16-6a-203. Incorporation.
             1238          (1) A nonprofit corporation is incorporated, and its corporate existence begins:
             1239          (a) when the articles of incorporation are filed by the division; or
             1240          (b) if a delayed effective date is specified pursuant to Subsection 16-6a-108 (2), on the
             1241      delayed effective date, unless a certificate of withdrawal is filed prior to the delayed effective date.
             1242          (2) The filing of the articles of incorporation by the division is conclusive proof that all
             1243      conditions precedent to incorporation have been satisfied, except in a proceeding by the state to:
             1244          (a) cancel or revoke the incorporation; or
             1245          (b) involuntarily dissolve the nonprofit corporation.
             1246          Section 30. Section 16-6a-204 is enacted to read:
             1247          16-6a-204. Liability for preincorporation transactions.
             1248          All persons purporting to act as or on behalf of a nonprofit corporation, knowing there is
             1249      no incorporation under this chapter, are jointly and severally liable for all liabilities created while
             1250      so acting.
             1251          Section 31. Section 16-6a-205 is enacted to read:
             1252          16-6a-205. Organization of the corporation.
             1253          (1) After incorporation:
             1254          (a) if initial directors are named in the articles of incorporation, the initial directors may
             1255      hold an organizational meeting, at the call of a majority of the initial directors, to complete the
             1256      organization of the nonprofit corporation by:
             1257          (i) appointing officers;
             1258          (ii) adopting bylaws, if desired; and
             1259          (iii) carrying on any other business brought before the meeting; or
             1260          (b) if initial directors are not named in the articles of incorporation, until directors are
             1261      elected, the incorporators may hold an organizational meeting at the call of a majority of the
             1262      incorporators to do whatever is necessary and proper to complete the organization of the nonprofit
             1263      corporation, including:
             1264          (i) the election of directors and officers;
             1265          (ii) the appointment of members; and


             1266          (iii) the adoption and amendment of bylaws.
             1267          (2) Action required or permitted by this chapter to be taken by incorporators at an
             1268      organizational meeting may be taken without a meeting if the action taken is evidenced by one or
             1269      more written consents that:
             1270          (a) describe the action taken; and
             1271          (b) are signed by each incorporator.
             1272          (3) An organizational meeting may be held in or out of this state.
             1273          Section 32. Section 16-6a-206 is enacted to read:
             1274          16-6a-206. Bylaws.
             1275          (1) (a) The board of directors of a nonprofit corporation may adopt initial bylaws for the
             1276      nonprofit corporation.
             1277          (b) If no directors of the nonprofit corporation have been elected, the incorporators may
             1278      adopt initial bylaws for the nonprofit corporation.
             1279          (c) If neither the incorporators nor the board of directors have adopted initial bylaws, the
             1280      members, if any, may adopt initial bylaws.
             1281          (2) The bylaws of a nonprofit corporation may contain any provision for managing the
             1282      business and regulating the affairs of the nonprofit corporation that is not inconsistent with law or
             1283      the articles of incorporation, including management and regulation of the nonprofit corporation
             1284      in the event of an emergency.
             1285          Section 33. Section 16-6a-207 is enacted to read:
             1286          16-6a-207. Incorporation of cooperative association.
             1287          (1) (a) If a cooperative association meets the requirements of Subsection (1)(b), it may:
             1288          (i) be incorporated under this chapter; and
             1289          (ii) use the word "cooperative" as part of its corporate or business name.
             1290          (b) A cooperative association described in Subsection (1)(a):
             1291          (i) may not be:
             1292          (A) an association subject to the insurance or credit union laws of this state;
             1293          (B) a health insurance purchasing association as defined in Section 31A-34-103 ; or
             1294          (C) a health insurance purchasing alliance licensed under Title 31A, Chapter 34, Voluntary
             1295      Health Insurance Purchasing Alliance Act; and
             1296          (ii) shall state in its articles of incorporation that:


             1297          (A) a member may not have more than one vote regardless of the number or amount of
             1298      stock or membership capital owned by the member unless voting is based in whole or in part on
             1299      the volume of patronage of the member with the cooperative association; and
             1300          (B) savings in excess of dividends and additions to reserves and surplus shall be
             1301      distributed or allocated to members or patrons on the basis of patronage.
             1302          (2) (a) Any cooperative association incorporated in accordance with Subsection (1):
             1303          (i) shall have all the rights and be subject to the limitations provided in Section 3-1-11 ; and
             1304          (ii) may pay dividends on its stock, if it has stock, subject to the limitations of Section
             1305      3-1-11 .
             1306          (b) The articles of incorporation or the bylaws of a cooperative association incorporated
             1307      in accordance with Subsection (1) may provide for:
             1308          (i) the establishment and alteration of voting districts;
             1309          (ii) the election of delegates to represent:
             1310          (A) the districts described in Subsection (2)(b)(i); and
             1311          (B) the members of the districts described in Subsection (2)(b)(i);
             1312          (iii) the establishment and alteration of director districts; and
             1313          (iv) the election of directors to represent the districts described in Subsection (2)(b)(ii)
             1314      by:
             1315          (A) the members of the districts; or
             1316          (B) delegates elected by the members.
             1317          (3) (a) A corporation organized under Title 3, Chapter 1, Uniform Agricultural
             1318      Cooperative Association Act, may convert itself into a cooperative association subject to this
             1319      chapter by adopting appropriate amendments to its articles of incorporation by which:
             1320          (i) it elects to become subject to this chapter; and
             1321          (ii) makes changes in its articles of incorporation that are:
             1322          (A) required by this chapter; and
             1323          (B) any other changes permitted by this chapter.
             1324          (b) The amendments described in Subsection (3)(a) shall be adopted and filed in the
             1325      manner provided by the law then applicable to the cooperative nonprofit corporation.
             1326          (4) Notwithstanding Subsection (1), a health insurance purchasing association may not use
             1327      the word "cooperative" or "alliance" but may use the word "association."


             1328          (5) Except as otherwise provided in this Section 16-6a-207 , a cooperative nonprofit
             1329      corporation shall be subject to this chapter.
             1330          Section 34. Section 16-6a-301 is enacted to read:
             1331     
Part 3. Purposes And Powers

             1332          16-6a-301. Purposes.
             1333          (1) Every nonprofit corporation incorporated under this chapter that in its articles of
             1334      incorporation has a statement meeting the requirements of Subsection 16-6a-202 (3)(a) may engage
             1335      in any lawful activity except for express limitations set forth in the articles of incorporation.
             1336          (2) (a) A nonprofit corporation engaging in an activity that is subject to regulation under
             1337      another statute of this state may incorporate under this chapter only if permitted by, and subject
             1338      to all limitations of, the other statute.
             1339          (b) Without limiting Subsection (2)(a) and subject to Subsection (2)(c), an organization
             1340      may not be organized under this chapter if the organization is subject to the:
             1341          (i) insurance laws of this state; or
             1342          (ii) laws governing depository institutions as defined in Section 7-1-103 .
             1343          (c) Notwithstanding Subsection (2)(b), the following may be organized under this
             1344      chapter:
             1345          (i) a health insurance purchasing association as defined in Section 31A-34-103 ; and
             1346          (ii) a health insurance purchasing alliance licensed under Title 31A, Chapter 34, Voluntary
             1347      Health Insurance Purchasing Alliance Act.
             1348          Section 35. Section 16-6a-302 is enacted to read:
             1349          16-6a-302. General powers.
             1350          Unless its articles of incorporation provide otherwise, and except as restricted by the Utah
             1351      Constitution, every nonprofit corporation has:
             1352          (1) perpetual duration and succession in its corporate name; and
             1353          (2) the same powers as an individual to do all things necessary or convenient to carry out
             1354      its permitted activities and affairs, including without limitation the power to:
             1355          (a) sue and be sued, complain and defend in its corporate name;
             1356          (b) (i) have a corporate seal, that may be altered at will; and
             1357          (ii) use the corporate seal, or a facsimile of the corporate seal, by impressing or affixing
             1358      it or in any other manner reproducing it;


             1359          (c) make and amend bylaws, not inconsistent with its articles of incorporation or with the
             1360      laws of this state, for managing and regulating the affairs of the nonprofit corporation;
             1361          (d) purchase, receive, lease, or otherwise acquire, and own, hold, improve, use, and
             1362      otherwise deal with, real or personal property, or any legal or equitable interest in property,
             1363      wherever located;
             1364          (e) sell, convey, mortgage, pledge, lease, exchange, and otherwise dispose of all or any part
             1365      of its property and assets;
             1366          (f) purchase, receive, subscribe for, or otherwise acquire, own, hold, vote, use, sell,
             1367      mortgage, lend, pledge, or otherwise dispose of, and deal in and with shares or other interests in,
             1368      or obligations of, any other entity;
             1369          (g) make contracts and guarantees, incur liabilities, borrow money, issue its notes, bonds,
             1370      and other obligations and secure any of its obligations by mortgage or pledge of any of its property,
             1371      assets, franchises, or income;
             1372          (h) lend money, invest and reinvest its funds, and receive and hold real and personal
             1373      property as security for repayment, except that a nonprofit corporation may not lend money to or
             1374      guarantee the obligation of a director or officer of the nonprofit corporation;
             1375          (i) be an agent, associate, fiduciary, manager, member, partner, promoter, or trustee of, or
             1376      to hold any similar position with, any entity;
             1377          (j) conduct its business, locate offices, and exercise the powers granted by this chapter
             1378      within or without this state;
             1379          (k) (i) elect directors and appoint officers, employees, and agents of the nonprofit
             1380      corporation;
             1381          (ii) define the duties of the directors, officers, employees, and agents; and
             1382          (iii) fix the compensation of the directors, officers, employees, and agents;
             1383          (l) pay compensation in a reasonable amount to its directors, officers, or members for
             1384      services rendered, including:
             1385          (i) payment of advances for expenses reasonably expected to be incurred; and
             1386          (ii) expenses relating to relocation of directors, officers, or employees of a nonprofit
             1387      corporation;
             1388          (m) pay pensions and establish pension plans, pension trusts, profit sharing plans, share
             1389      bonus plans, share option plans, and benefit or incentive plans for any or all of its current or former


             1390      directors, officers, employees, and agents;
             1391          (n) make contributions to or for any person for:
             1392          (i) the public welfare;
             1393          (ii) charitable, religious, scientific, or educational purposes; or
             1394          (iii) for other purposes that further the corporate interest;
             1395          (o) pursue any lawful activity that will aid governmental policy;
             1396          (p) make payments or do any other act, not inconsistent with law, that furthers the business
             1397      and affairs of the nonprofit corporation;
             1398          (q) establish rules governing the conduct of the business and affairs of the nonprofit
             1399      corporation in the event of an emergency;
             1400          (r) impose dues, assessments, admission fees, and transfer fees upon its members;
             1401          (s) (i) establish conditions for admission of members;
             1402          (ii) admit members; and
             1403          (iii) issue or transfer membership;
             1404          (t) carry on a business;
             1405          (u) indemnify current or former directors, officers, employees, fiduciaries, or agents as
             1406      provided in this chapter;
             1407          (v) limit the liability of its directors as provided in Subsection 16-6a-823 (1);
             1408          (w) cease its corporate activities and dissolve; and
             1409          (x) issue certificates or stock evidencing:
             1410          (i) membership in the nonprofit corporation; or
             1411          (ii) interests in water or other property rights.
             1412          Section 36. Section 16-6a-303 is enacted to read:
             1413          16-6a-303. Emergency powers.
             1414          (1) In anticipation of or during an emergency defined in Subsection (4), the board of
             1415      directors may:
             1416          (a) modify lines of succession to accommodate the incapacity of any director, officer,
             1417      employee, or agent;
             1418          (b) adopt bylaws to be effective only in an emergency; and
             1419          (c) (i) relocate the principal office;
             1420          (ii) designate an alternative principal office or regional office; or


             1421          (iii) authorize officers to relocate or designate an alternative principal office or regional
             1422      office.
             1423          (2) During an emergency as defined in Subsection (4), unless emergency bylaws provide
             1424      otherwise:
             1425          (a) notice of a meeting of the board of directors:
             1426          (i) need be given only to those directors whom it is practicable to reach; and
             1427          (ii) may be given in any practicable manner, including by publication or radio; and
             1428          (b) the officers of the nonprofit corporation present at a meeting of the board of directors
             1429      may be considered to be directors for the meeting, in order of rank and within the same rank in
             1430      order of seniority, as necessary to achieve a quorum.
             1431          (3) Corporate action taken in good faith during an emergency under this section to further
             1432      the ordinary business affairs of the nonprofit corporation:
             1433          (a) binds the nonprofit corporation; and
             1434          (b) may not be the basis for the imposition of liability on any director, officer, employee,
             1435      or agent of the nonprofit corporation on the ground that the action was not an authorized corporate
             1436      action.
             1437          (4) An emergency exists for purposes of this section if a quorum of the directors cannot
             1438      readily be obtained because of a catastrophic event.
             1439          Section 37. Section 16-6a-304 is enacted to read:
             1440          16-6a-304. Ultra vires.
             1441          (1) Except as provided in Subsection (2), the validity of corporate action may not be
             1442      challenged on the ground that the nonprofit corporation lacks or lacked power to act.
             1443          (2) A nonprofit corporation's power to act may be challenged:
             1444          (a) in a proceeding against the nonprofit corporation to enjoin the act brought by:
             1445          (i) a director; or
             1446          (ii) one or more voting members in a derivative proceeding;
             1447          (b) in a proceeding by or in the right of the nonprofit corporation, whether directly,
             1448      derivatively, or through a receiver, trustee, or other legal representative, against an incumbent or
             1449      former director, officer, employee, or agent of the nonprofit corporation; or
             1450          (c) in a proceeding by the attorney general under Section 16-6a-1414 .
             1451          (3) In a proceeding under Subsection (2)(a) to enjoin an unauthorized corporate act, the


             1452      court may:
             1453          (a) enjoin or set aside the act, if:
             1454          (i) it would be equitable to do so; and
             1455          (ii) all affected persons are parties to the proceeding; and
             1456          (b) award damages for loss, including anticipated profits, suffered by the nonprofit
             1457      corporation or another party because of an injunction issued under this section.
             1458          Section 38. Section 16-6a-401 is enacted to read:
             1459     
Part 4. Name

             1460          16-6a-401. Corporate name.
             1461          (1) The corporate name of a nonprofit corporation:
             1462          (a) may, but need not contain:
             1463          (i) the word "corporation," "incorporated," or "company"; or
             1464          (ii) an abbreviation of "corporation," "incorporated," or "company";
             1465          (b) may not contain any word or phrase that indicates or implies that it is organized for any
             1466      purpose other than one or more of the purposes contained in Section 16-6a-301 and its articles of
             1467      incorporation;
             1468          (c) except as authorized by the division under Subsection (2), shall be distinguishable, as
             1469      defined in Section 16-10a-401 , from:
             1470          (i) the name of any domestic corporation incorporated in this state;
             1471          (ii) the name of any foreign corporation authorized to conduct affairs in this state;
             1472          (iii) the name of any domestic nonprofit corporation incorporated in this state;
             1473          (iv) the name of any foreign nonprofit corporation authorized to conduct affairs in this
             1474      state;
             1475          (v) the name of any domestic limited liability company formed in this state;
             1476          (vi) the name of any foreign limited liability company authorized to conduct affairs in this
             1477      state;
             1478          (vii) the name of any limited partnership formed or authorized to conduct affairs in this
             1479      state;
             1480          (viii) any name that is reserved under Section 16-6a-402 or 16-10a-402 ;
             1481          (ix) the name of any entity that has registered its name under Section 42-2-5 ;
             1482          (x) the name of any trademark or service mark registered by the division; or


             1483          (xi) any assumed name filed under Section 42-2-5 ;
             1484          (d) shall be, for purposes of recordation, either translated into English or transliterated into
             1485      letters of the English alphabet if it is not in English;
             1486          (e) without the written consent of the United States Olympic Committee, may not contain
             1487      the words:
             1488          (i) "Olympic";
             1489          (ii) "Olympiad"; or
             1490          (iii) "Citius Altius Fortius"; and
             1491          (f) without the written consent of the State Board of Regents issued in accordance with
             1492      Section 53B-5-114 , may not contain the words:
             1493          (i) "university";
             1494          (ii) "college"; or
             1495          (iii) "institute."
             1496          (2) The division may authorize the use of the name applied for if:
             1497          (a) the name is distinguishable from one or more of the names and trademarks described
             1498      in Subsection (1)(c) that are on the division's records; or
             1499          (b) if the applicant delivers to the division a certified copy of the final judgment of a court
             1500      of competent jurisdiction establishing the applicant's right to use the name applied for in this state
             1501      registered or reserved with the division pursuant to the laws of this state.
             1502          (3) A corporation may use the name of another domestic or foreign corporation that is used
             1503      in this state if:
             1504          (a) the other corporation is incorporated or authorized to conduct affairs in this state; and
             1505          (b) the proposed user corporation:
             1506          (i) has merged with the other corporation;
             1507          (ii) has been formed by reorganization of the other corporation; or
             1508          (iii) has acquired all or substantially all of the assets, including the corporate name, of the
             1509      other corporation.
             1510          (4) (a) A nonprofit corporation may apply to the division for authorization to file its
             1511      articles of incorporation under, or to register or reserve, a name that is not distinguishable upon
             1512      the division's records from one or more of the names described in Subsection (1).
             1513          (b) The division shall approve the application filed under Subsection (4)(a) if:


             1514          (i) the other person whose name is not distinguishable from the name under which the
             1515      applicant desires to file, or which the applicant desires to register or reserve:
             1516          (A) consents to the filing, registration, or reservation in writing; and
             1517          (B) submits an undertaking in a form satisfactory to the division to change its name to a
             1518      name that is distinguishable from the name of the applicant; or
             1519          (ii) the applicant delivers to the division a certified copy of the final judgment of a court
             1520      of competent jurisdiction establishing the applicant's right to make the requested filing in this state
             1521      under the name applied for.
             1522          (5) Only names of corporations may contain the:
             1523          (a) words "corporation," or "incorporated"; or
             1524          (b) abbreviation "corp." or "inc."
             1525          (6) The division may not issue a certificate of incorporation to any association violating
             1526      the provisions of this section.
             1527          Section 39. Section 16-6a-402 is enacted to read:
             1528          16-6a-402. Reserved name.
             1529          (1) (a) Any person may apply for the reservation of the exclusive use of a corporate name
             1530      by delivering an application for reservation of name to the division for filing, setting forth:
             1531          (i) the name and address of the applicant; and
             1532          (ii) the name proposed to be reserved.
             1533          (b) (i) If the division finds that the name applied for would be available for corporate use,
             1534      the division shall reserve the name for the applicant's exclusive use for 120 days from the day the
             1535      division receives the application under Subsection (1)(a).
             1536          (ii) A reservation may be renewed.
             1537          (2) The owner of a reserved corporate name may transfer the reservation to any other
             1538      person by delivery to the division for filing of a notice of the transfer that has been executed by the
             1539      owner and states:
             1540          (a) the reserved name;
             1541          (b) the name of the owner; and
             1542          (c) the name and address of the transferee.
             1543          (3) (a) The corporate name set forth in a document described in Subsection (3)(b) is
             1544      reserved until the document:


             1545          (i) becomes effective pursuant to Subsection 16-6a-108 (2); or
             1546          (ii) is withdrawn under Subsection 16-6a-108 (3).
             1547          (b) Subsection (3)(a) applies to a document that:
             1548          (i) is one of the following:
             1549          (A) articles of incorporation;
             1550          (B) articles of amendment to articles of incorporation;
             1551          (C) restated articles of incorporation; or
             1552          (D) articles of merger;
             1553          (ii) specifies a delayed effective date pursuant to Subsection 16-6a-108 (2);
             1554          (iii) sets forth a new corporate name; and
             1555          (iv) is filed by the division.
             1556          Section 40. Section 16-6a-403 is enacted to read:
             1557          16-6a-403. Corporate name -- Limited rights.
             1558          The authorization granted by the division to file articles of incorporation under a corporate
             1559      name or to reserve a name does not:
             1560          (1) abrogate or limit the law governing unfair competition or unfair trade practices;
             1561          (2) derogate from the common law the principles of equity or the statutes of this state or
             1562      of the United States with respect to the right to acquire and protect names and trademarks; or
             1563          (3) create an exclusive right in geographic or generic terms contained within a name.
             1564          Section 41. Section 16-6a-501 is enacted to read:
             1565     
Part 5. Office and Agent

             1566          16-6a-501. Registered office and registered agent.
             1567          (1) A nonprofit corporation shall continuously maintain in this state:
             1568          (a) a registered office; and
             1569          (b) a registered agent.
             1570          (2) The registered agent required under Subsection (1) shall be:
             1571          (a) an individual:
             1572          (i) who resides in this state; and
             1573          (ii) whose business office is identical with the registered office;
             1574          (b) a domestic corporation or domestic nonprofit corporation whose business office is
             1575      identical with the registered office;


             1576          (c) a foreign corporation or foreign nonprofit corporation:
             1577          (i) authorized to conduct affairs in this state; and
             1578          (ii) whose business office is identical with the registered office; or
             1579          (iii) a domestic limited liability company or foreign limited liability company:
             1580          (A) authorized to conduct affairs in this state; and
             1581          (B) whose business office is identical with the registered office.
             1582          (3) A corporation may not serve as its own registered agent.
             1583          Section 42. Section 16-6a-502 is enacted to read:
             1584          16-6a-502. Change of registered office or registered agent.
             1585          (1) (a) A nonprofit corporation may change its registered office or registered agent by
             1586      delivering to the division for filing a statement of change that sets forth:
             1587          (i) the name of the nonprofit corporation;
             1588          (ii) the street address of its current registered office;
             1589          (iii) if the registered office is to be changed, the street address of the new registered office;
             1590          (iv) the name of its current registered agent;
             1591          (v) if the registered agent is to be changed:
             1592          (A) the name of the new registered agent; and
             1593          (B) the new registered agent's signed written consent to the appointment; and
             1594          (vi) that, after the change or changes are made, the street addresses of its registered office
             1595      and the business office of its registered agent will be identical.
             1596          (b) Notwithstanding Subsection (1)(a)(v), the new registered agent's signed written consent
             1597      to the appointment may be:
             1598          (i) on the statement of change; or
             1599          (ii) in a document accompanying the statement of change.
             1600          (2) If the street address of a registered agent's business office is changed, the street address
             1601      of the registered office of any nonprofit corporation for which the person is the registered agent
             1602      may be changed by:
             1603          (a) giving written notice to the nonprofit corporation of the change; and
             1604          (b) delivering to the division for filing a statement of change that:
             1605          (i) complies with the requirements of Subsection (1);
             1606          (ii) recites that the nonprofit corporation has been notified of the change, as provided in


             1607      Section 16-6a-103 ; and
             1608          (iii) is signed by the registered agent.
             1609          Section 43. Section 16-6a-503 is enacted to read:
             1610          16-6a-503. Resignation of registered agent.
             1611          (1) (a) A registered agent of a nonprofit corporation may resign the agency appointment
             1612      by delivering to the division for filing a statement of resignation pursuant to this section.
             1613          (b) The statement of resignation required by Subsection (1)(a) shall be:
             1614          (i) signed by the resigning registered agent; and
             1615          (ii) accompanied by two exact or conformed copies of the statement of resignation.
             1616          (c) The statement of resignation may include a statement that the registered office is also
             1617      discontinued.
             1618          (d) The statement of resignation shall include a declaration that notice of the resignation
             1619      has been given to the nonprofit corporation at the principal office shown on the most recent annual
             1620      report of the nonprofit corporation on file with the division.
             1621          (2) After filing the statement of resignation required by Subsection (1), the division shall
             1622      mail:
             1623          (a) one copy of the statement of resignation to the registered office of the corporation; and
             1624          (b) one copy of the statement of resignation to the nonprofit corporation at the principal
             1625      office if known by the division.
             1626          (3) Thirty-one days after the date on which the statement of resignation is filed:
             1627          (a) the agency appointment is terminated; and
             1628          (b) the registered office is discontinued, if so provided.
             1629          Section 44. Section 16-6a-504 is enacted to read:
             1630          16-6a-504. Service on corporation.
             1631          (1) A nonprofit corporation's registered agent is the nonprofit corporation's agent for
             1632      service of process, notice, or demand required or permitted by law to be served on the nonprofit
             1633      corporation.
             1634          (2) (a) If a nonprofit corporation has no registered agent, or the agent cannot with
             1635      reasonable diligence be served, the nonprofit corporation may be served by registered or certified
             1636      mail, return receipt requested, addressed to the nonprofit corporation at its principal office, if
             1637      known by the division.


             1638          (b) Service is perfected under this Subsection (2) at the earliest of:
             1639          (a) the date the nonprofit corporation receives the process, notice, or demand;
             1640          (b) the date shown on the return receipt, if signed on behalf of the nonprofit corporation;
             1641      or
             1642          (c) five days after mailing.
             1643          (3) This section does not prescribe the only means, or necessarily the required means, of
             1644      serving a nonprofit corporation.
             1645          Section 45. Section 16-6a-601 is enacted to read:
             1646     
Part 6. Members

             1647          16-6a-601. No requirement of members.
             1648          A nonprofit corporation is not required to have members.
             1649          Section 46. Section 16-6a-602 is enacted to read:
             1650          16-6a-602. Number and classes.
             1651          (1) A nonprofit corporation may have:
             1652          (a) one or more classes of voting or nonvoting members; and
             1653          (b) one or more members in each class described in Subsection (1)(a).
             1654          (2) The bylaws may designate:
             1655          (a) the class or classes of members; and
             1656          (b) the qualifications and rights of the members of each class of members including the
             1657      matters or items for which voting members may vote.
             1658          Section 47. Section 16-6a-603 is enacted to read:
             1659          16-6a-603. Admission.
             1660          (1) The bylaws may establish criteria or procedures for admission of members.
             1661          (2) A person may not be admitted as a member without the person's consent.
             1662          (3) A nonprofit corporation may issue certificates evidencing membership in the nonprofit
             1663      corporation.
             1664          Section 48. Section 16-6a-604 is enacted to read:
             1665          16-6a-604. Consideration.
             1666          Unless otherwise provided by the bylaws, a nonprofit corporation may admit members:
             1667          (1) for no consideration; or
             1668          (2) for such consideration as is determined by the board of directors.


             1669          Section 49. Section 16-6a-605 is enacted to read:
             1670          16-6a-605. Differences in rights and obligations of members.
             1671          Unless otherwise provided by this chapter or the bylaws:
             1672          (1) all voting members shall have the same rights and obligations with respect to voting
             1673      and all other matters that this chapter specifically reserves to voting members; and
             1674          (2) with respect to matters not reserved under Subsection (1), all members, including
             1675      voting members, shall have the same rights and obligations.
             1676          Section 50. Section 16-6a-606 is enacted to read:
             1677          16-6a-606. Transfers.
             1678          (1) Unless otherwise provided by the bylaws, a member of a nonprofit corporation may
             1679      not transfer:
             1680          (a) a membership; or
             1681          (b) any right arising from a membership.
             1682          (2) Where transfer rights have been provided, a restriction on transfer rights may not be
             1683      binding with respect to a member holding a membership issued prior to the adoption of the
             1684      restriction, unless the restriction is approved by the affected member.
             1685          Section 51. Section 16-6a-607 is enacted to read:
             1686          16-6a-607. Creditor's action against member.
             1687          A proceeding may not be brought by a creditor to reach the liability, if any, of a member
             1688      to the nonprofit corporation unless:
             1689          (1) (a) final judgment has been rendered in favor of the creditor against the nonprofit
             1690      corporation; and
             1691          (b) execution has been returned unsatisfied in whole or in part; or
             1692          (2) a proceeding described in Subsection (1) would be useless.
             1693          Section 52. Section 16-6a-608 is enacted to read:
             1694          16-6a-608. Resignation.
             1695          (1) Unless otherwise provided by the bylaws, a member may resign at any time.
             1696          (2) The resignation of a member does not relieve the member from any obligation or
             1697      commitment the member may have to the nonprofit corporation incurred or made prior to
             1698      resignation.
             1699          Section 53. Section 16-6a-609 is enacted to read:


             1700          16-6a-609. Termination, expulsion, or suspension.
             1701          (1) Unless otherwise provided by the bylaws, except pursuant to a procedure that is fair
             1702      and reasonable:
             1703          (a) a member of a nonprofit corporation may not be expelled or suspended; and
             1704          (b) membership in a nonprofit corporation may not be terminated or suspended.
             1705          (2) For purposes of this section, a procedure is fair and reasonable when either:
             1706          (a) the bylaws or a written policy of the board of directors set forth a procedure that
             1707      provides:
             1708          (i) not less than 15 days prior written notice of:
             1709          (A) the expulsion, suspension, or termination; and
             1710          (B) the reasons for the expulsion, suspension, or termination; and
             1711          (ii) an opportunity for the member to be heard:
             1712          (A) orally or in writing;
             1713          (B) not less than five days before the effective date of the expulsion, suspension, or
             1714      termination; and
             1715          (C) by one or more persons authorized to decide that the proposed expulsion, termination,
             1716      or suspension not take place; or
             1717          (b) it is fair and reasonable taking into consideration all of the relevant facts and
             1718      circumstances.
             1719          (3) For purposes of this section, any written notice given by mail shall be given by
             1720      first-class or certified mail sent to the last address of the member shown on the nonprofit
             1721      corporation's records.
             1722          (4) Unless otherwise provided by the bylaws, any proceeding challenging an expulsion,
             1723      suspension, or termination, including a proceeding in which defective notice is alleged, shall be
             1724      commenced within one year after the effective date of the expulsion, suspension, or termination.
             1725          (5) Unless otherwise provided by the bylaws, a member who has been expelled or
             1726      suspended may be liable to the nonprofit corporation for dues, assessments, or fees as a result of
             1727      an obligation incurred or commitment made prior to the effective date of the expulsion or
             1728      suspension.
             1729          Section 54. Section 16-6a-610 is enacted to read:
             1730          16-6a-610. Purchase of memberships.


             1731          (1) Unless otherwise provided by the bylaws, a nonprofit corporation may not purchase
             1732      the membership of a member:
             1733          (a) who resigns; or
             1734          (b) whose membership is terminated.
             1735          (2) (a) If so authorized, a nonprofit corporation may purchase the membership of a member
             1736      who resigns or whose membership is terminated for the amount and pursuant to the conditions set
             1737      forth in or authorized by:
             1738          (i) its bylaws; or
             1739          (ii) agreement with the affected member.
             1740          (b) A payment permitted under Subsection (2)(a) may not violate:
             1741          (i) Section 16-6a-1301 ; or
             1742          (ii) any other provision of this chapter.
             1743          Section 55. Section 16-6a-611 is enacted to read:
             1744          16-6a-611. No property right.
             1745          A member does not have a vested property right resulting from any provision in the articles
             1746      of incorporation or the bylaws, including any provision relating to management, control, purpose,
             1747      or duration of the nonprofit corporation.    
             1748          Section 56. Section 16-6a-612 is enacted to read:
             1749          16-6a-612. Derivative suits.
             1750          (1) Without affecting the right of a member or director to bring a proceeding against a
             1751      nonprofit corporation or its directors or officers, a proceeding may be brought in the right of a
             1752      nonprofit corporation to procure a judgment in its favor by:
             1753          (a) a voting member; or
             1754          (b) a director.
             1755          (2) In a proceeding described in Subsection (1), each complainant shall be a voting
             1756      member or director at the time of bringing the proceeding.
             1757          (3) (a) A complaint in a proceeding brought in the right of a nonprofit corporation shall
             1758      be verified and allege with particularity:
             1759          (i) the demand made, if any, to obtain action by the directors; and
             1760          (ii) (A) why the complainant could not obtain the action; or
             1761          (B) why the complainant did not make the demand.


             1762          (b) If a demand for action was made and the nonprofit corporation's investigation of the
             1763      demand is in progress when the proceeding is filed, the court may stay the suit until the
             1764      investigation is completed.
             1765          (4) (a) (i) In any action instituted in the right of a nonprofit corporation by one or more
             1766      voting members, the court having jurisdiction over the matter may, at any time before final
             1767      judgment, require the plaintiff to give security for the costs and reasonable expenses that may be:
             1768          (A) directly attributable to and incurred by the nonprofit corporation in the defense of the
             1769      action; or
             1770          (B) incurred by other parties named as defendant for which the nonprofit corporation may
             1771      become legally liable.
             1772          (ii) Notwithstanding Subsection (4)(a)(i), the security for the costs and reasonable
             1773      expenses may not include fees of attorneys.
             1774          (b) The amount of the security permitted under this Subsection (4) may from time to time
             1775      be increased or decreased, in the discretion of the court, upon showing that the security provided
             1776      has or may become inadequate or excessive.
             1777          (c) If the court finds that the action was commenced without reasonable cause, the
             1778      nonprofit corporation shall have recourse to the security permitted under this Subsection (4) in the
             1779      amount the court shall determine upon the termination of the action.
             1780          (5) A procedure pursuant to this section shall comply with the applicable rules set forth
             1781      in the Utah Rules of Civil Procedure, as amended from time to time.
             1782          (6) An action may not be commenced in this state by a member of a foreign nonprofit
             1783      corporation in the right of a foreign nonprofit corporation unless the action is permitted by the laws
             1784      of the state under which the foreign nonprofit corporation is incorporated.
             1785          Section 57. Section 16-6a-613 is enacted to read:
             1786          16-6a-613. Delegates.
             1787          (1) A nonprofit corporation may provide in its bylaws for delegates having some or all of
             1788      the authority of members.
             1789          (2) The bylaws may set forth provisions relating to:
             1790          (a) the characteristics, qualifications, rights, limitations, and obligations of delegates,
             1791      including their selection and removal;
             1792          (b) calling, noticing, holding, and conducting meetings of delegates; and


             1793          (c) carrying on corporate activities during and between meetings of delegates.
             1794          Section 58. Section 16-6a-701 is enacted to read:
             1795     
Part 7. Member Meetings and Voting

             1796          16-6a-701. Annual and regular meetings.
             1797          (1) Unless the bylaws eliminate the requirement for holding an annual meeting, a nonprofit
             1798      corporation that has voting members shall hold a meeting of the voting members annually:
             1799          (a) at a time and date stated in or fixed in accordance with the bylaws; or
             1800          (b) if a time and date is not stated in or fixed in accordance with the bylaws, at a time and
             1801      date stated in or fixed in accordance with a resolution of the board of directors.
             1802          (2) A nonprofit corporation with members may hold regular membership meetings at:
             1803          (a) a time and date stated in or fixed in accordance with the bylaws; or
             1804          (b) if a time and date is not stated in or fixed in accordance with the bylaws, at a time and
             1805      date stated in or fixed in accordance with a resolution of the board of directors.
             1806          (3) (a) Annual and regular membership meetings may be held in or out of this state:
             1807          (i) at the place stated in or fixed in accordance with the bylaws; or
             1808          (ii) if no place is stated in or fixed in accordance with the bylaws, at a place stated in or
             1809      fixed in accordance with a resolution of the board of directors.
             1810          (b) If no place is stated or fixed in accordance with Subsection (3)(a), annual and regular
             1811      meetings shall be held at the nonprofit corporation's principal office.
             1812          (4) The failure to hold an annual or regular meeting at the time and date determined
             1813      pursuant to Subsection (1) does not:
             1814          (a) affect the validity of any corporate action; or
             1815          (b) work a forfeiture or dissolution of the nonprofit corporation.
             1816          Section 59. Section 16-6a-702 is enacted to read:
             1817          16-6a-702. Special meetings.
             1818          (1) A nonprofit corporation shall hold a special meeting of its members:
             1819          (a) on call of:
             1820          (i) its board of directors; or
             1821          (ii) the person or persons authorized by the bylaws or resolution of the board of directors
             1822      to call a special meeting; or
             1823          (b) unless otherwise provided by the bylaws, if the nonprofit corporation receives one or


             1824      more written demands for the meeting, that:
             1825          (i) state the purpose or purposes for which the meeting is to be held; and
             1826          (ii) are signed and dated by members holding at least 10% of all the votes entitled pursuant
             1827      to the bylaws to be cast on any issue proposed to be considered at the meeting.
             1828          (2) If not otherwise fixed under Section 16-6a-703 or 16-6a-706 , the record date for
             1829      determining the members entitled to demand a special meeting pursuant to Subsection (1)(b) is the
             1830      later of the date of:
             1831          (a) the earliest of any of the demands pursuant to which the meeting is called; or
             1832          (b) the date that is 60 days before the date the first of the demands is received by the
             1833      nonprofit corporation.
             1834          (3) If a notice for a special meeting demanded pursuant to Subsection (1)(b) is not given
             1835      pursuant to Section 16-6a-704 within 30 days after the date the written demand is delivered to a
             1836      corporate officer, regardless of the requirements of Subsection (4), a person signing the demand
             1837      may:
             1838          (a) set the time and place of the meeting; and
             1839          (b) give notice pursuant to Section 16-6a-704 .
             1840          (4) (a) A special meeting of the members may be held in or out of this state:
             1841          (i) at the place stated in or fixed in accordance with the bylaws; or
             1842          (ii) if a place is not stated in or fixed in accordance with the bylaws, at a place stated in
             1843      or fixed in accordance with a resolution of the board of directors.
             1844          (b) If no place is stated or fixed in accordance with Subsection (3)(a) or (4)(a), a special
             1845      meeting of the members shall be held at the nonprofit corporation's principal office.
             1846          (5) Unless otherwise provided by the bylaws, only business within the purposes described
             1847      in the notice of the meeting required by Subsection 16-6a-704 (3) may be conducted at a special
             1848      meeting of the members.
             1849          Section 60. Section 16-6a-703 is enacted to read:
             1850          16-6a-703. Court-ordered meeting.
             1851          (1) (a) Upon an application described in Subsection (1)(b) the holding of a meeting of the
             1852      members may be summarily ordered by:
             1853          (i) the district court of the county in this state where the nonprofit corporation's principal
             1854      office is located; or


             1855          (ii) if the nonprofit corporation has no principal office in this state:
             1856          (A) by the district court of the county in which its registered office is located; or
             1857          (B) if the nonprofit corporation has no registered office, by the district court in and for Salt
             1858      Lake County.
             1859          (b) Subsection (1)(a) applies to an application by:
             1860          (i) any voting member entitled to participate in an annual meeting if an annual meeting
             1861      was required to be held and was not held within 15 months after:
             1862          (A) the corporation's last annual meeting; or
             1863          (B) if there has been no annual meeting, the date of incorporation; or
             1864          (ii) any person who participated in a call of or demand for a special meeting effective
             1865      under Subsection 16-6a-702 (1), if:
             1866          (A) notice of the special meeting was not given within 30 days after:
             1867          (I) the date of the call; or
             1868          (II) the date the last of the demands necessary to require the calling of the meeting was
             1869      received by the nonprofit corporation pursuant to Subsection 16-6a-702 (1)(b); or
             1870          (B) the special meeting was not held in accordance with the notice.
             1871          (2) A court that orders a meeting under Subsection (1) may:
             1872          (a) fix the time and place of the meeting;
             1873          (b) determine the members entitled to participate in the meeting;
             1874          (c) specify a record date for determining members entitled to notice of and to vote at the
             1875      meeting;
             1876          (d) prescribe the form and content of the notice of the meeting;
             1877          (e) (i) fix the quorum required for specific matters to be considered at the meeting; or
             1878          (ii) direct that the votes represented at the meeting constitute a quorum for action on the
             1879      specific matters to be considered at the meeting; and
             1880          (f) enter other orders necessary or appropriate to accomplish the holding of the meeting.
             1881          Section 61. Section 16-6a-704 is enacted to read:
             1882          16-6a-704. Notice of meeting.
             1883          (1) A nonprofit corporation shall give to each member entitled to vote at the meeting
             1884      notice consistent with its bylaws of meetings of members in a fair and reasonable manner.
             1885          (2) Any notice that conforms to the requirements of Subsection (3) is fair and reasonable,


             1886      but other means of giving notice may also be fair and reasonable when all the circumstances are
             1887      considered.
             1888          (3) Notice is fair and reasonable if:
             1889          (a) the nonprofit corporation notifies its members of the place, date, and time of each
             1890      annual, regular, and special meeting of members:
             1891          (i) no fewer than ten days before the meeting;
             1892          (ii) if notice is mailed by other than first-class or registered mail, no fewer than 30 days,
             1893      nor more than 60 days before the meeting date; and
             1894          (iii) if notice is given by newspaper as provided in Subsection 16-6a-103 (2), by publication
             1895      three separate times with:
             1896          (A) the first of the publications no more than 60 days before the meeting date; and
             1897          (B) the last of the publications no fewer than ten days before the meeting date;
             1898          (b) the notice of an annual or regular meeting includes a description of any matter or
             1899      matters that:
             1900          (i) must be approved by the members; or
             1901          (ii) for which the members' approval is sought under Sections 16-6a-825 , 16-6a-910 ,
             1902      16-6a-1003 , 16-6a-1010 , 16-6a-1102 , 16-6a-1202 , and 16-6a-1402 ; and
             1903          (c) unless otherwise provided by this chapter or the bylaws, the notice of a special meeting
             1904      includes a description of the purpose or purposes for which the meeting is called.
             1905          (4) (a) Unless otherwise provided by the bylaws, if an annual, regular, or special meeting
             1906      of members is adjourned to a different date, time, or place, notice need not be given of the new
             1907      date, time, or place, if the new date, time, or place is announced at the meeting before adjournment.
             1908          (b) Notwithstanding Subsection (4)(a), if a new record date for the adjourned meeting is
             1909      or shall be fixed under Section 16-6a-706 , notice of the adjourned meeting shall be given under
             1910      this section to the members of record as of the new record date.
             1911          (5) When giving notice of an annual, regular, or special meeting of members, a nonprofit
             1912      corporation shall give notice of a matter a member intends to raise at the meeting if:
             1913          (a) requested in writing to do so by a person entitled to call a special meeting; and
             1914          (b) the request is received by the secretary or president of the nonprofit corporation at least
             1915      ten days before the nonprofit corporation gives notice of the meeting.
             1916          Section 62. Section 16-6a-705 is enacted to read:


             1917          16-6a-705. Waiver of notice.
             1918          (1) (a) A member may waive any notice required by this chapter or by the bylaws, whether
             1919      before or after the date or time stated in the notice as the date or time when any action will occur
             1920      or has occurred.
             1921          (b) A waiver described in Subsection (1) shall be:
             1922          (i) in writing;
             1923          (ii) signed by the member entitled to the notice; and
             1924          (iii) delivered to the nonprofit corporation for:
             1925          (A) inclusion in the minutes; or
             1926          (B) filing with the corporate records.
             1927          (c) The delivery and filing required under Subsection (1)(b) may not be conditions of the
             1928      effectiveness of the waiver.
             1929          (2) A member's attendance at a meeting:
             1930          (a) waives objection to lack of notice or defective notice of the meeting, unless the
             1931      member at the beginning of the meeting objects to holding the meeting or transacting business at
             1932      the meeting because of lack of notice or defective notice; and
             1933          (b) waives objection to consideration of a particular matter at the meeting that is not within
             1934      the purpose or purposes described in the meeting notice, unless the member objects to considering
             1935      the matter when it is presented.
             1936          Section 63. Section 16-6a-706 is enacted to read:
             1937          16-6a-706. Record date -- Determining members entitled to notice and vote.
             1938          (1) (a) The bylaws may fix or provide the manner of fixing a date as the record date for
             1939      determining the members entitled to notice of a members' meeting.
             1940          (b) If the bylaws do not fix or provide for fixing a record date described in Subsection
             1941      (1)(a), the board of directors may fix a future date as the record date.
             1942          (c) If a record date is not fixed in accordance with Subsection (1)(a) or (b), members
             1943      entitled to notice of the meeting are the members of the nonprofit corporation:
             1944          (i) at the close of business on the business day preceding the day on which notice is given;
             1945      or
             1946          (ii) if notice is waived, at the close of business on the business day preceding the day on
             1947      which the meeting is held.


             1948          (2) (a) The bylaws may fix or provide the manner of fixing a date as the record date for
             1949      determining the members entitled to vote at a members' meeting.
             1950          (b) If the bylaws do not fix or provide for fixing a record date described in Subsection
             1951      (2)(a), the board may fix a future date as the record date.
             1952          (c) If a record date is not fixed in accordance with Subsection (2)(a) or (b), members
             1953      entitled to vote at the meeting are the members of the nonprofit corporation:
             1954          (i) on the date of the meeting; and
             1955          (ii) who are otherwise eligible to vote.
             1956          (3) (a) The bylaws may fix or provide the manner for determining a date as the record date
             1957      for the purpose of determining the members entitled to exercise any rights in respect of any other
             1958      lawful action.
             1959          (b) If the bylaws do not fix or provide for fixing a record date described in Subsection
             1960      (3)(a), the board of directors may fix a future date as the record date.
             1961          (c) If a record date is not fixed in accordance with Subsection (3)(a) or (b), members
             1962      entitled to exercise the right are members of the corporation at the later of:
             1963          (i) the close of business on the day on which the board adopts the resolution relating to the
             1964      exercise of the right; or
             1965          (ii) the close of business on the 60th day before the date of the exercise of the right.
             1966          (4) A record date fixed under this section may not be more than 70 days before the meeting
             1967      or action requiring a determination of members occurs.
             1968          (5) (a) A determination of members entitled to notice of or to vote at a meeting of
             1969      members is effective for any adjournment of the meeting unless the board of directors fixes a new
             1970      date for determining the right to notice or the right to vote.
             1971          (b) The board of directors shall fix a new date for determining the right to notice or the
             1972      right to vote if the meeting is adjourned to a date more than 120 days after the record date for
             1973      determining members entitled to notice of the original meeting.
             1974          (6) If a court orders a meeting adjourned to a date more than 120 days after the date fixed
             1975      for the original meeting, the court may:
             1976          (a) provide that the original record date for notice or voting continues in effect; or
             1977          (b) fix a new record date for notice or voting.
             1978          Section 64. Section 16-6a-707 is enacted to read:


             1979          16-6a-707. Action without meeting.
             1980          (1) Unless otherwise provided in the articles of incorporation and Subsection (5), and
             1981      subject to the limitations of Subsection 16-6a-1704 (3), any action that may be taken at any annual
             1982      or special meeting of members may be taken without a meeting and without prior notice, if one
             1983      or more consents in writing, setting forth the action taken, are signed by the members having not
             1984      less than the minimum voting power that would be necessary to authorize or take the action at a
             1985      meeting at which all members entitled to vote on the action were present and voted.
             1986          (2) (a) Unless the written consents of all members entitled to vote have been obtained,
             1987      notice of any member approval without a meeting shall be given at least ten days before the
             1988      consummation of the transaction, action, or event authorized by the member action to:
             1989          (i) those members entitled to vote who have not consented in writing; and
             1990          (ii) those members:
             1991          (A) not entitled to vote; and
             1992          (B) to whom this chapter requires that notice of the proposed action be given.
             1993          (b) The notice required pursuant to Subsection (2)(a) shall contain or be accompanied by
             1994      the same material that under this chapter would have been required to be sent in a notice of
             1995      meeting at which the proposed action would have been submitted to the members for action.
             1996          (3) Any member giving a written consent, or the member's proxyholder or a personal
             1997      representative of the member or their respective proxyholder, may revoke the consent by a signed
             1998      writing:
             1999          (a) describing the action;
             2000          (b) stating that the member's prior consent is revoked; and
             2001          (c) that is received by the nonprofit corporation prior to the effectiveness of the action.
             2002          (4) (a) A member action taken pursuant to this section is not effective unless all written
             2003      consents on which the nonprofit corporation relies for the taking of an action pursuant to
             2004      Subsection (1) are:
             2005          (i) received by the nonprofit corporation within a 60-day period; and
             2006          (ii) not revoked pursuant to Subsection (3).
             2007          (b) Action taken by the members pursuant to this section is effective:
             2008          (i) as of the date the last written consent necessary to effect the action is received by the
             2009      nonprofit corporation; or


             2010          (ii) if all of the written consents necessary to effect the action specify a later date as the
             2011      effective date of the action, the later date specified in the consents.
             2012          (c) If the nonprofit corporation has received written consents in accordance with
             2013      Subsection (1) signed by all members entitled to vote with respect to the action, the effective date
             2014      of the member action may be any date that is specified in all the written consents as the effective
             2015      date of the member action.
             2016          (d) Unless otherwise provided by the bylaws, a written consent under this Subsection (4)
             2017      may be received by the nonprofit corporation by electronically transmitted facsimile or other form
             2018      of communication providing the corporation with a complete copy of the written consent,
             2019      including a copy of the signature to the written consent.
             2020          (5) Notwithstanding Subsection (1), directors may not be elected by written consent except
             2021      by unanimous written consent of all shares entitled to vote for the election of directors.
             2022          (6) If not otherwise determined under Section 16-6a-703 or 16-6a-706 , the record date for
             2023      determining the members entitled to take action without a meeting or entitled to be given notice
             2024      under Subsection (2) of action taken without a meeting is the date the first member delivers to the
             2025      nonprofit corporation a writing upon which the action is taken pursuant to Subsection (1).
             2026          (7) Action taken under this section has the same effect as action taken at a meeting of
             2027      members and may be so described in any document.
             2028          Section 65. Section 16-6a-708 is enacted to read:
             2029          16-6a-708. Meetings by telecommunication.
             2030          (1) Unless otherwise provided in the bylaws, any or all of the members may participate in
             2031      an annual, regular, or special meeting of the members by, or the meeting may be conducted
             2032      through the use of, any means of communication by which all persons participating in the meeting
             2033      may hear each other during the meeting.
             2034          (2) A member participating in a meeting by a means permitted under Subsection (1) is
             2035      considered to be present in person at the meeting.
             2036          Section 66. Section 16-6a-709 is enacted to read:
             2037          16-6a-709. Action by written ballot.
             2038          (1) Unless otherwise provided by the bylaws, any action that may be taken at any annual,
             2039      regular, or special meeting of members may be taken without a meeting if the nonprofit
             2040      corporation delivers a written ballot to every member entitled to vote on the matter.


             2041          (2) A written ballot described in Subsection (1) shall:
             2042          (a) set forth each proposed action; and
             2043          (b) provide an opportunity to vote for or against each proposed action.
             2044          (3) Approval by written ballot pursuant to this section shall be valid only when:
             2045          (a) the number of votes cast by ballot equals or exceeds the quorum required to be present
             2046      at a meeting authorizing the action; and
             2047          (b) the number of approvals equals or exceeds the number of votes that would be required
             2048      to approve the matter at a meeting at which the total number of votes cast was the same as the
             2049      number of votes cast by ballot.
             2050          (4) All solicitations for votes by written ballot shall:
             2051          (a) indicate the number of responses needed to meet the quorum requirements;
             2052          (b) state the percentage of approvals necessary to approve each matter other than election
             2053      of directors;
             2054          (c) specify the time by which a ballot must be received by the nonprofit corporation in
             2055      order to be counted; and
             2056          (d) be accompanied by written information sufficient to permit each person casting the
             2057      ballot to reach an informed decision on the matter.
             2058          (5) Unless otherwise provided by the bylaws, a written ballot may not be revoked.
             2059          (6) Action taken under this section has the same effect as action taken at a meeting of
             2060      members and may be described as such in any document.
             2061          Section 67. Section 16-6a-710 is enacted to read:
             2062          16-6a-710. Members' list for meeting and action by written ballot.
             2063          (1) (a) Unless otherwise provided by the bylaws, after fixing a record date for a notice of
             2064      a meeting or for determining the members entitled to take action by written ballot, a nonprofit
             2065      corporation shall prepare a list of the names of all its members who are:
             2066          (i) (A) entitled to notice of the meeting; and
             2067          (B) to vote at the meeting; or
             2068          (ii) to take the action by written ballot.
             2069          (b) The list required by Subsection (1) shall:
             2070          (i) be arranged by voting group;
             2071          (ii) be alphabetical within each voting group;


             2072          (iii) show the address of each member entitled to notice of, and to vote at, the meeting or
             2073      to take such action by written ballot; and
             2074          (iv) show the number of votes each member is entitled to vote at the meeting or by written
             2075      ballot.
             2076          (2) (a) If prepared in connection with a meeting of the members, the members' list required
             2077      by Subsection (1) shall be available for inspection by any member entitled to vote at the meeting:
             2078          (i) (A) beginning the earlier of:
             2079          (I) ten days before the meeting for which the list was prepared; or
             2080          (II) two business days after notice of the meeting is given; and
             2081          (B) continuing through the meeting, and any adjournment of the meeting; and
             2082          (ii) (A) at the nonprofit corporation's principal office; or
             2083          (B) at a place identified in the notice of the meeting in the city where the meeting will be
             2084      held.
             2085          (b) (i) The nonprofit corporation shall make the members' list required by Subsection (1)
             2086      available at the meeting.
             2087          (ii) Any member entitled to vote at the meeting or an agent or attorney of a member
             2088      entitled to vote at the meeting is entitled to inspect the members' list at any time during the meeting
             2089      or any adjournment.
             2090          (c) A member entitled to vote at the meeting, or an agent or attorney of a member entitled
             2091      to vote at the meeting, is entitled on written demand to inspect and, subject to Subsection
             2092      16-6a-1602 (3) and Subsections 16-6a-1603 (2) and (3), to copy a members' list required by
             2093      Subsection (1):
             2094          (i) during:
             2095          (A) regular business hours; and
             2096          (B) the period it is available for inspection; and
             2097          (ii) at the member's expense.
             2098          (3) (a) On application of a member a nonprofit corporation, the applicable district court
             2099      may take an action described in Subsection (3)(b) if the nonprofit corporation refuses to allow a
             2100      member entitled to vote at the meeting or by the written ballot, or an agent or attorney of a member
             2101      entitled to vote at the meeting or by the written ballot, to inspect or copy the members' list during
             2102      the period it is required to be available for inspection under Subsection (2).


             2103          (b) Under Subsection (3)(a), the applicable court may:
             2104          (i) summarily order the inspection or copying of the members' list at the nonprofit
             2105      corporation's expense; and
             2106          (ii) until the inspection or copying is complete:
             2107          (A) postpone or adjourn the meeting for which the members' list was prepared; or
             2108          (B) postpone the time when the nonprofit corporation must receive written ballots in
             2109      connection with which the members' list was prepared.
             2110          (c) For purposes of this Subsection (3), the applicable court is:
             2111          (i) the district court of the county in this state where the nonprofit corporation's principal
             2112      office is located; or
             2113          (ii) if the nonprofit corporation has no principal office in this state:
             2114          (A) the district court of the county where its registered office is located; or
             2115          (B) if the nonprofit corporation has no registered office in this state, the district court in
             2116      and for Salt Lake County.
             2117          (4) If a court orders inspection or copying of a members' list pursuant to Subsection (3),
             2118      unless the nonprofit corporation proves that it refused inspection or copying of the list in good faith
             2119      because it had a reasonable basis for doubt about the right of the member or the agent or attorney
             2120      of the member to inspect or copy the members' list:
             2121          (a) the court shall order the nonprofit corporation to pay the member's costs, including
             2122      reasonable counsel fees, incurred in obtaining the order;
             2123          (b) the court may order the nonprofit corporation to pay the member for any damages the
             2124      member incurred; and
             2125          (c) the court may grant the member any other remedy afforded the member by law.
             2126          (5) If a court orders inspection or copying of a members' list pursuant to Subsection (3),
             2127      the court may impose reasonable restrictions on the use or distribution of the list by the member.
             2128          (6) Failure to prepare or make available the members' list does not affect the validity of
             2129      action taken at the meeting or by means of the written ballot.
             2130          Section 68. Section 16-6a-711 is enacted to read:
             2131          16-6a-711. Voting entitlement generally.
             2132          (1) Unless otherwise provided by the bylaws:
             2133          (a) only voting members shall be entitled to vote with respect to any matter required or


             2134      permitted under this chapter to be submitted to a vote of the members;
             2135          (b) all references in this chapter to votes of or voting by the members shall be considered
             2136      to permit voting only by the voting members; and
             2137          (c) voting members shall be entitled to vote with respect to all matters required or
             2138      permitted under this chapter to be submitted to a vote of the members.
             2139          (2) Unless otherwise provided by the bylaws, each member entitled to vote shall be
             2140      entitled to one vote on each matter submitted to a vote of members.
             2141          (3) Unless otherwise provided by the bylaws, if a membership stands of record in the
             2142      names of two or more persons, the membership's acts with respect to voting shall have the
             2143      following effect:
             2144          (a) if only one votes, the act binds all; and
             2145          (b) if more than one votes, the vote shall be divided on a pro-rata basis.
             2146          Section 69. Section 16-6a-712 is enacted to read:
             2147          16-6a-712. Proxies.
             2148          (1) Unless otherwise provided by the bylaws, a member entitled to vote may vote or
             2149      otherwise act in person or by proxy.
             2150          (2) Without limiting the manner in which a member may appoint a proxy to vote or
             2151      otherwise act for the member, Subsections (2)(a) and (b) constitute valid means of appointing a
             2152      proxy:
             2153          (a) A member may appoint a proxy by signing an appointment form, either personally or
             2154      by the member's attorney-in-fact.
             2155          (b) (i) Subject to Subsection (2)(b)(ii) a member may appoint a proxy by transmitting or
             2156      authorizing the transmission of a telegram, teletype, facsimile, or other electronic transmission
             2157      providing a written statement of the appointment to:
             2158          (A) the proxy;
             2159          (B) a proxy solicitor;
             2160          (C) a proxy support service organization;
             2161          (D) another person duly authorized by the proxy to receive appointments as agent for the
             2162      proxy; or
             2163          (E) the nonprofit corporation.
             2164          (ii) An appointment transmitted under Subsection (2)(b)(i) shall set forth or be transmitted


             2165      with written evidence from which it can be determined that the member transmitted or authorized
             2166      the transmission of the appointment.
             2167          (3) (a) An appointment of a proxy is effective against the nonprofit corporation when
             2168      received by the nonprofit corporation, including receipt by the nonprofit corporation of an
             2169      appointment transmitted pursuant to Subsection (2)(b).
             2170          (b) An appointment is valid for 11 months unless a different period is expressly provided
             2171      in the appointment form.
             2172          (4) Any complete copy, including an electronically transmitted facsimile, of an
             2173      appointment of a proxy may be substituted for or used in lieu of the original appointment for any
             2174      purpose for which the original appointment could be used.
             2175          (5) An appointment of a proxy is revocable by the member.
             2176          (6) An appointment of a proxy is revoked by the person appointing the proxy:
             2177          (a) attending any meeting and voting in person; or
             2178          (b) signing and delivering to the secretary or other officer or agent authorized to tabulate
             2179      proxy votes:
             2180          (i) a writing stating that the appointment of the proxy is revoked; or
             2181          (ii) a subsequent appointment form.
             2182          (7) The death or incapacity of the member appointing a proxy does not affect the right of
             2183      the nonprofit corporation to accept the proxy's authority unless notice of the death or incapacity
             2184      is received by the secretary or other officer or agent authorized to tabulate votes before the proxy
             2185      exercises the proxy's authority under the appointment.
             2186          (8) Subject to Section 16-6a-713 and to any express limitation on the proxy's authority
             2187      appearing on the appointment form, a nonprofit corporation is entitled to accept the proxy's vote
             2188      or other action as that of the member making the appointment.
             2189          Section 70. Section 16-6a-713 is enacted to read:
             2190          16-6a-713. Nonprofit corporation's acceptance of votes.
             2191          (1) If the name signed on any of the following corresponds to the name of a member, the
             2192      nonprofit corporation, if acting in good faith, may accept and give the following effect as the act
             2193      of the member:
             2194          (a) a vote;
             2195          (b) a consent;


             2196          (c) a written ballot;
             2197          (d) a waiver;
             2198          (e) a proxy appointment; or
             2199          (f) a proxy appointment revocation.
             2200          (2) If the name signed on any writing listed in Subsection (1) does not correspond to the
             2201      name of a member, the nonprofit corporation, if acting in good faith, may accept the writing and
             2202      give it effect as the act of the member if:
             2203          (a) (i) the member is an entity; and
             2204          (ii) the name signed purports to be that of an officer or agent of the entity;
             2205          (b) (i) the name signed purports to be that of an administrator, executor, guardian, or
             2206      conservator representing the member; and
             2207          (ii) evidence of fiduciary status acceptable to the nonprofit corporation with respect to the
             2208      writing listed in Subsection (1) that:
             2209          (A) has been requested by the nonprofit corporation; and
             2210          (B) is presented to the nonprofit corporation;
             2211          (c) (i) the name signed purports to be that of a receiver or trustee in bankruptcy of the
             2212      member; and
             2213          (ii) evidence of this status acceptable to the nonprofit corporation with respect to the
             2214      writing listed in Subsection (1) that:
             2215          (A) has been requested by the nonprofit corporation; and
             2216          (B) is presented to the nonprofit corporation;
             2217          (d) (i) the name signed purports to be that of a pledgee, beneficial owner, or
             2218      attorney-in-fact of the member; and
             2219          (ii) evidence acceptable to the nonprofit corporation of the signatory's authority to sign for
             2220      the member has been presented with respect to the writing listed in Subsection (1) that:
             2221          (A) has been requested by the nonprofit corporation; and
             2222          (B) is presented to the nonprofit corporation;
             2223          (e) (i) two or more persons are the member as cotenants or fiduciaries;
             2224          (ii) the name signed purports to be the name of at least one of the cotenants or fiduciaries;
             2225      and
             2226          (iii) the person signing appears to be acting on behalf of all the cotenants or fiduciaries;


             2227      or
             2228          (f) the acceptance of the writing listed in Subsection (1) is otherwise proper under rules
             2229      established by the nonprofit corporation that are not inconsistent with this Subsection (2).
             2230          (3) The nonprofit corporation is entitled to reject a writing listed in Subsection (1) if the
             2231      secretary or other officer or agent authorized to tabulate votes, acting in good faith, has reasonable
             2232      basis for doubt about:
             2233          (a) the validity of the signature on it; or
             2234          (b) the signatory's authority to sign for the member.
             2235          (4) The nonprofit corporation and its officer or agent who accepts or rejects a writing listed
             2236      in Subsection (1) in good faith and in accordance with the standards of this section are not liable
             2237      in damages for the consequences of the acceptance or rejection.
             2238          (5) Corporate action based on the acceptance or rejection of a writing listed in Subsection
             2239      (1) under this section is valid unless a court of competent jurisdiction determines otherwise.
             2240          Section 71. Section 16-6a-714 is enacted to read:
             2241          16-6a-714. Quorum and voting requirements for voting groups.
             2242          (1) (a) Members entitled to vote as a separate voting group may take action on a matter at
             2243      a meeting only if a quorum of those members exists with respect to that matter.
             2244          (b) Unless otherwise provided in this chapter or the bylaws, a majority of the votes entitled
             2245      to be cast on the matter by the voting group constitutes a quorum of that voting group for action
             2246      on that matter.
             2247          (2) Once a member is represented for any purpose at a meeting, including the purpose of
             2248      determining that a quorum exists, the member is considered present for quorum purposes:
             2249          (a) for the remainder of the meeting; and
             2250          (b) for any adjournment of that meeting, unless:
             2251          (i) otherwise provided in the bylaws; or
             2252          (ii) a new record date is or shall be set for that adjourned meeting.
             2253          (3) Action on a matter other than the election of directors by a voting group is approved
             2254      if:
             2255          (a) a quorum exists;
             2256          (b) the votes cast within the voting group favoring the action exceed the votes cast within
             2257      the voting group opposing the action; and


             2258          (c) a greater number of affirmative votes is not required by this chapter or the bylaws.
             2259          (4) The election of directors is governed by Section 16-6a-717 .
             2260          Section 72. Section 16-6a-715 is enacted to read:
             2261          16-6a-715. Action by single and multiple voting groups.
             2262          (1) If this chapter or the bylaws provide for voting by a single voting group on a matter,
             2263      action on that matter is taken when voted upon by that voting group as provided in Section
             2264      16-6a-714 .
             2265          (2) (a) If this chapter or the bylaws provide for voting by two or more voting groups on
             2266      a matter, action on that matter is taken only when voted upon by each of those voting groups
             2267      counted separately as provided in Section 16-6a-714 .
             2268          (b) One voting group may vote on a matter even though no action is taken by another
             2269      voting group entitled to vote on the matter.
             2270          Section 73. Section 16-6a-716 is enacted to read:
             2271          16-6a-716. Greater quorum or voting requirements.
             2272          (1) The articles of incorporation or bylaws may provide for a greater:
             2273          (a) quorum requirement for members or voting groups than is provided for by this chapter;
             2274      or
             2275          (b) voting requirement for members or voting groups than is provided by this chapter.
             2276          (2) An amendment to the articles of incorporation or the bylaws that adds, changes, or
             2277      deletes a greater quorum or voting requirement shall meet the same quorum requirement and be
             2278      adopted by the same vote and voting groups required to take action under the greater of the quorum
             2279      and voting requirements:
             2280          (a) then in effect; or
             2281          (b) proposed to be adopted.
             2282          Section 74. Section 16-6a-717 is enacted to read:
             2283          16-6a-717. Voting for directors -- Cumulative voting.
             2284          (1) If the bylaws provide for cumulative voting for directors by the voting members, voting
             2285      members may cumulatively vote, by:
             2286          (a) multiplying the number of votes the voting members are entitled to cast by the number
             2287      of directors for whom they are entitled to vote; and
             2288          (b) (i) casting the product for a single candidate; or


             2289          (ii) distributing the product among two or more candidates.
             2290          (2) Cumulative voting is not authorized at a particular meeting unless:
             2291          (a) the meeting notice or statement accompanying the notice states that cumulative voting
             2292      will take place; or
             2293          (b) (i) a voting member gives notice during the meeting and before the vote is taken of the
             2294      voting member's intent to cumulate votes; and
             2295          (ii) if one voting member gives this notice, all other voting members participating in the
             2296      election are entitled to cumulate their votes without giving further notice.
             2297          (3) (a) In an election of multiple directors, that number of candidates equaling the number
             2298      of directors to be elected, having the highest number of votes cast in favor of their election, are
             2299      elected to the board of directors.
             2300          (b) When only one director is being voted upon, the affirmative vote of a majority of the
             2301      members constituting a quorum at the meeting at which the election occurs shall be required for
             2302      election to the board of directors.
             2303          Section 75. Section 16-6a-718 is enacted to read:
             2304          16-6a-718. Voting agreements.
             2305          (1) Two or more members may provide for the manner in which they will vote by signing
             2306      an agreement for that purpose.
             2307          (2) A voting agreement created under this section is specifically enforceable.
             2308          Section 76. Section 16-6a-801 is enacted to read:
             2309     
Part 8. Directors and Officers

             2310          16-6a-801. Requirement for board of directors.
             2311          (1) A nonprofit corporation shall have a board of directors.
             2312          (2) (a) Except as provided in this chapter or Subsection (2)(b), all corporate powers shall
             2313      be exercised by or under the authority of, and the business and affairs of the nonprofit corporation
             2314      managed under the direction of, the board of directors.
             2315          (b) (i) The articles of incorporation may authorize one or more persons to exercise some
             2316      or all of the powers that would otherwise be exercised by the board of directors.
             2317          (ii) To the extent the articles of incorporation authorize a person other than the board of
             2318      directors to have the authority and perform a duty of the board of directors, the directors shall be
             2319      relieved to that extent from such authority and duty.


             2320          Section 77. Section 16-6a-802 is enacted to read:
             2321          16-6a-802. Qualifications of directors.
             2322          (1) A director shall be:
             2323          (a) a natural person; and
             2324          (b) 18 years of age or older.
             2325          (2) The bylaws may prescribe other qualifications for directors in addition to the
             2326      requirements under Subsection (1).
             2327          (3) A director need not be a resident of this state or a member of the nonprofit corporation
             2328      unless required by the bylaws.
             2329          Section 78. Section 16-6a-803 is enacted to read:
             2330          16-6a-803. Number of directors.
             2331          (1) A board of directors shall consist of three or more directors, with the number specified
             2332      in, or fixed in accordance with, the bylaws.
             2333          (2) (a) The bylaws may establish, or permit the voting members or the board of directors
             2334      to establish, a range for the size of the board of directors by fixing a minimum and maximum
             2335      number of directors.
             2336          (b) If a range for the size of the board of directors is established in accordance with
             2337      Subsection (2)(a), the number of directors may be fixed or changed from time to time within the
             2338      range by:
             2339          (i) the voting members; or
             2340          (ii) the board of directors.
             2341          Section 79. Section 16-6a-804 is enacted to read:
             2342          16-6a-804. Election, appointment, and designation of directors.
             2343          (1) (a) All directors except the initial directors shall be elected, appointed, or designated
             2344      as provided in the bylaws.
             2345          (b) If no method of election, appointment, or designation is set forth in the bylaws, the
             2346      directors other than the initial directors shall be elected as follows:
             2347          (i) if the nonprofit corporation has voting members, all directors except the initial directors
             2348      shall be elected by the voting members at each annual meeting of the voting members; and
             2349          (ii) if the nonprofit corporation does not have voting members, all directors except the
             2350      initial directors shall be elected by the board of directors.


             2351          (2) (a) The bylaws may authorize the election of all or a specified number or portion of
             2352      directors, except the initial directors, by:
             2353          (i) the members of one or more voting groups of voting members; or
             2354          (ii) the directors of one or more authorized classes of directors.
             2355          (b) A class of voting members or directors entitled to elect one or more directors is a
             2356      separate voting group for purposes of the election of directors.
             2357          (3) The bylaws may authorize the appointment of one or more directors by one or more
             2358      persons, or by the holder of the office or position, as the bylaws shall specify.
             2359          (4) The bylaws may provide for election of directors by voting members or delegates:
             2360          (a) on the basis of chapter or other organizational unit;
             2361          (b) by region or other geographic unit;
             2362          (c) by preferential voting; or
             2363          (d) by any other reasonable method.
             2364          (5) For purposes of this chapter, designation occurs when the bylaws:
             2365          (a) name an individual as a director; or
             2366          (b) designate the holder of some office or position as a director.
             2367          Section 80. Section 16-6a-805 is enacted to read:
             2368          16-6a-805. Terms of directors generally.
             2369          (1) (a) The bylaws may specify the terms of directors.
             2370          (b) In the absence of any term specified in the bylaws, the term of each director shall be
             2371      one year.
             2372          (c) Unless otherwise provided in the bylaws, directors may be elected for successive terms.
             2373          (2) Unless otherwise provided in the bylaws, the terms of the initial directors of a nonprofit
             2374      corporation expire at the first meeting at which directors are elected or appointed.
             2375          (3) A decrease in the number of directors or in the term of office does not shorten an
             2376      incumbent director's term.
             2377          (4) Unless otherwise provided in the bylaws, the term of a director filling a vacancy
             2378      expires at the end of the unexpired term that the director is filling, except that if a director is
             2379      elected to fill a vacancy created by reason of an increase in the number of directors, the term of the
             2380      director shall expire on the later of:
             2381          (a) the next meeting at which directors are elected; or


             2382          (b) the term, if any, designated for the director at the time of the creation of the position
             2383      being filled.
             2384          (5) Despite the expiration of a director's term, a director continues to serve until:
             2385          (a) the director's successor is elected, appointed, or designated and qualifies; or
             2386          (b) there is a decrease in the number of directors.
             2387          (6) A director whose term has expired may deliver to the division for filing a statement to
             2388      that effect pursuant to Section 16-6a-1608 .
             2389          Section 81. Section 16-6a-806 is enacted to read:
             2390          16-6a-806. Staggered terms for directors.
             2391          (1) The bylaws may provide for staggering the terms of directors by dividing the total
             2392      number of directors into any number of groups.
             2393          (2) The terms of office of the several groups permitted under Subsection (1) need not be
             2394      uniform.
             2395          Section 82. Section 16-6a-807 is enacted to read:
             2396          16-6a-807. Resignation of directors.
             2397          (1) A director may resign at any time by giving written notice of resignation to the
             2398      nonprofit corporation.
             2399          (2) A resignation of a director is effective when the notice is received by the nonprofit
             2400      corporation unless the notice specifies a later effective date.
             2401          (3) A director who resigns may deliver to the division for filing a statement that the
             2402      director resigns pursuant to Section 16-6a-1608 .
             2403          (4) The failure to attend or meet obligations shall be effective as a resignation at the time
             2404      of the board of director's vote to confirm the failure if:
             2405          (a) at the beginning of a director's term on the board, the bylaws provide that a director
             2406      may be considered to have resigned for failing to:
             2407          (i) attend a specified number of board meetings; or
             2408          (ii) meet other specified obligations of directors; and
             2409          (b) the failure to attend or meet obligations is confirmed by an affirmative vote of the
             2410      board of directors.
             2411          Section 83. Section 16-6a-808 is enacted to read:
             2412          16-6a-808. Removal of directors.


             2413          (1) Directors elected by voting members or directors may be removed as provided in
             2414      Subsections (1)(a) through (g).
             2415          (a) The voting members may remove one or more directors elected by them with or
             2416      without cause unless the bylaws provide that directors may be removed only for cause.
             2417          (b) If a director is elected by a voting group, only that voting group may participate in the
             2418      vote to remove that director.
             2419          (c) A director may be removed only if the number of votes cast to remove the director
             2420      would be sufficient to elect the director at a meeting to elect directors.
             2421          (d) A director elected by voting members may be removed by the voting members only:
             2422          (i) at a meeting called for the purpose of removing that director; and
             2423          (ii) if the meeting notice states that the purpose, or one of the purposes, of the meeting is
             2424      removal of the director.
             2425          (e) An entire board of directors may be removed under Subsections (1)(a) through (d).
             2426          (f) (i) Except as provided in Subsection (1)(f)(ii), a director elected by the board of
             2427      directors may be removed with or without cause by the vote of a majority of the directors then in
             2428      office or such greater number as is set forth in the bylaws.
             2429          (ii) A director elected by the board of directors to fill the vacancy of a director elected by
             2430      the voting members may be removed without cause by the voting members but not the board of
             2431      directors.
             2432          (g) A director who is removed pursuant to this section may deliver to the division for filing
             2433      a statement to that effect pursuant to Section 16-6a-1608 .
             2434          (2) Unless otherwise provided in the bylaws:
             2435          (a) an appointed director may be removed without cause by the person appointing the
             2436      director;
             2437          (b) the person described in Subsection (2)(a) shall remove the director by giving written
             2438      notice of the removal to:
             2439          (i) the director; and
             2440          (ii) the nonprofit corporation; and
             2441          (c) unless the written notice described in Subsection (2)(b) specifies a future effective date,
             2442      a removal is effective when the notice is received by both:
             2443          (i) the director to be removed; and


             2444          (ii) the nonprofit corporation.
             2445          (3) A designated director, as provided in Subsection 16-6a-804 (5), may be removed by an
             2446      amendment to the bylaws deleting or changing the designation.
             2447          Section 84. Section 16-6a-809 is enacted to read:
             2448          16-6a-809. Removal of directors by judicial proceeding.
             2449          (1) (a) The applicable court may remove a director in a proceeding commenced either by
             2450      the nonprofit corporation or by voting members holding at least 10% of the votes entitled to be cast
             2451      in the election of the director's successor if the court finds that:
             2452          (i) the director engaged in:
             2453          (A) fraudulent or dishonest conduct; or
             2454          (B) gross abuse of authority or discretion with respect to the nonprofit corporation; or
             2455          (ii) (A) a final judgment has been entered finding that the director has violated a duty set
             2456      forth in Part 4; and
             2457          (B) removal is in the best interests of the nonprofit corporation.
             2458          (b) For purposes of this Subsection (1), the applicable court is the:
             2459          (i) district court of the county in this state where a nonprofit corporation's principal office
             2460      is located; or
             2461          (ii) if the nonprofit corporation has no principal office in this state:
             2462          (A) the district court of the county in which its registered office is located; or
             2463          (B) if the nonprofit corporation has no registered office, the district court for Salt Lake
             2464      County.
             2465          (2) The court that removes a director may bar the director for a period prescribed by the
             2466      court from:
             2467          (a) reelection;
             2468          (b) reappointment; or
             2469          (c) designation.
             2470          (3) If voting members commence a proceeding under Subsection (1), the voting members
             2471      shall make the nonprofit corporation a party defendant.
             2472          (4) A director who is removed pursuant to this section may deliver to the division for filing
             2473      a statement to that effect pursuant to Section 16-6a-1608 .
             2474          Section 85. Section 16-6a-810 is enacted to read:


             2475          16-6a-810. Vacancy on board.
             2476          (1) Unless otherwise provided in the bylaws, if a vacancy occurs on a board of directors,
             2477      including a vacancy resulting from an increase in the number of directors:
             2478          (a) the voting members, if any, may fill the vacancy;
             2479          (b) the board of directors may fill the vacancy; or
             2480          (c) if the directors remaining in office constitute fewer than a quorum of the board of
             2481      directors, the remaining directors may fill the vacancy by the affirmative vote of a majority of all
             2482      the directors remaining in office.
             2483          (2) Notwithstanding Subsection (1), unless otherwise provided in the bylaws, if the vacant
             2484      office was held by a director elected by a voting group of voting members:
             2485          (a) if one or more of the remaining directors were elected by the same voting group of
             2486      voting members:
             2487          (i) only the directors elected by the same voting group of voting members are entitled to
             2488      vote to fill the vacancy if it is filled by directors; and
             2489          (ii) the directors elected by the same voting group of voting members may fill the vacancy
             2490      by the affirmative vote of a majority of the directors remaining in office; and
             2491          (b) only that voting group is entitled to vote to fill the vacancy if it is filled by the voting
             2492      members.
             2493          (3) Notwithstanding Subsection (1) and unless otherwise provided in the bylaws, only the
             2494      directors elected by the same voting group of directors are entitled to vote to fill the vacancy if:
             2495          (a) the vacant office was held by a director elected by a voting group of directors; and
             2496          (b) any persons in that voting group remain as directors.
             2497          (4) Unless otherwise provided in the bylaws, if a vacant office was held by an appointed
             2498      director, only the person who appointed the director may fill the vacancy.
             2499          (5) (a) If a vacant office was held by a designated director, as provided in Subsection
             2500      16-6a-804 (5), the vacancy shall be filled as provided in the bylaws.
             2501          (b) In the absence of an applicable bylaw provision, the vacancy may not be filled by the
             2502      board.
             2503          (6) A vacancy that will occur at a specific later date by reason of a resignation effective
             2504      at a later date under Subsection 16-6a-807 (2) or otherwise, may be filled before the vacancy
             2505      occurs, but the new director may not take office until the vacancy occurs.


             2506          Section 86. Section 16-6a-811 is enacted to read:
             2507          16-6a-811. Compensation of directors.
             2508          Unless otherwise provided in the bylaws, the board of directors may authorize and fix the
             2509      compensation of directors.
             2510          Section 87. Section 16-6a-812 is enacted to read:
             2511          16-6a-812. Meetings.
             2512          (1) The board of directors may hold regular or special meetings in or out of this state.
             2513          (2) (a) Unless otherwise provided in the bylaws, the board of directors may permit any
             2514      director to participate in a regular or special meeting by, or conduct the meeting through the use
             2515      of, any means of communication by which all directors participating may hear each other during
             2516      the meeting.
             2517          (b) A director participating in a meeting by a means permitted under Subsection (1) is
             2518      considered to be present in person at the meeting.
             2519          Section 88. Section 16-6a-813 is enacted to read:
             2520          16-6a-813. Action without meeting.
             2521          (1) Unless otherwise provided in the bylaws, any action required or permitted by this
             2522      chapter to be taken at a board of directors' meeting may be taken without a meeting if each and
             2523      every member of the board in writing either:
             2524          (a) votes for the action; or
             2525          (b) (i) (A) votes against the action; or
             2526          (B) abstains from voting; and
             2527          (ii) waives the right to demand that action not be taken without a meeting.
             2528          (2) Action is taken under this section only if the affirmative vote for the action equals or
             2529      exceeds the minimum number of votes that would be necessary to take the action at a meeting at
             2530      which all of the directors then in office were present and voted.
             2531          (3) (a) An action taken pursuant to this section may not be effective unless the nonprofit
             2532      corporation receives writings:
             2533          (i) describing the action taken;
             2534          (ii) otherwise satisfying the requirements of Subsection (1);
             2535          (iii) signed by all directors; and
             2536          (iv) not revoked pursuant to Subsection (4).


             2537          (b) Unless otherwise provided by the bylaws, a writing described in Subsection (3)(a) may
             2538      be received by the nonprofit corporation by electronically transmitted facsimile or other form of
             2539      wire or wireless communication providing the nonprofit corporation with a complete copy of the
             2540      document, including a copy of the signature on the document.
             2541          (c) A director's right to demand that action not be taken without a meeting shall be
             2542      considered to have been waived if the nonprofit corporation receives a writing satisfying the
             2543      requirements of Subsection (1) that has been signed by the director and not revoked pursuant to
             2544      Subsection (4).
             2545          (d) Action taken pursuant to this section shall be effective when the last writing necessary
             2546      to effect the action is received by the nonprofit corporation, unless the writings describing the
             2547      action taken set forth a different effective date.
             2548          (4) If the writing is received by the nonprofit corporation before the last writing necessary
             2549      to effect the action is received by the nonprofit corporation, any director who has signed a writing
             2550      pursuant to this section may revoke the writing by a writing signed and dated by the director:
             2551          (a) describing the action; and
             2552          (b) stating that the director's prior vote with respect to the writing is revoked.
             2553          (5) Action taken pursuant to this section:
             2554          (a) has the same effect as action taken at a meeting of directors; and
             2555          (b) may be described as an action taken at a meeting of directors in any document.
             2556          Section 89. Section 16-6a-814 is enacted to read:
             2557          16-6a-814. Notice of meeting.
             2558          (1) Unless otherwise provided in this chapter or in the bylaws, regular meetings of the
             2559      board of directors may be held without notice of the date, time, place, or purpose of the meeting.
             2560          (2) (a) Unless the bylaws provide for a longer or shorter period, special meetings of the
             2561      board of directors shall be preceded by at least two days notice of the date, time, and place of the
             2562      meeting.
             2563          (b) The notice required by Subsection (2)(a) need not describe the purpose of the special
             2564      meeting unless otherwise required by this chapter or the bylaws.
             2565          Section 90. Section 16-6a-815 is enacted to read:
             2566          16-6a-815. Waiver of notice.
             2567          (1) (a) A director may waive any notice of a meeting before or after the time and date of


             2568      the meeting stated in the notice.
             2569          (b) Except as provided by Subsection (2), the waiver shall:
             2570          (i) be in writing;
             2571          (ii) signed by the director entitled to the notice; and
             2572          (iii) be delivered to the nonprofit corporation for filing with the corporate records.
             2573          (c) The delivery and filing required by Subsection (1)(b) may not be conditions of the
             2574      effectiveness of the waiver.
             2575          (2) A director's attendance at or participation in a meeting waives any required notice to
             2576      that director of the meeting unless:
             2577          (a) (i) at the beginning of the meeting or promptly upon the director's later arrival, the
             2578      director objects to holding the meeting or transacting business at the meeting because of lack of
             2579      notice or defective notice; and
             2580          (ii) after objecting, the director does not vote for or assent to action taken at the meeting;
             2581      or
             2582          (b) if special notice was required of a particular purpose pursuant to Subsection
             2583      16-6a-814 (2):
             2584          (i) the director objects to transacting business with respect to the purpose for which the
             2585      special notice was required; and
             2586          (ii) after objecting, the director does not vote for or assent to action taken at the meeting
             2587      with respect to the purpose.
             2588          Section 91. Section 16-6a-816 is enacted to read:
             2589          16-6a-816. Quorum and voting.
             2590          (1) Unless a greater or lesser number is required by the bylaws, a quorum of a board of
             2591      directors consists of a majority of the number of directors in office immediately before the meeting
             2592      begins.
             2593          (2) The bylaws may authorize a quorum of a board of directors to consist of:
             2594          (a) no fewer than 1/3 of the number of directors fixed if the corporation has a fixed board
             2595      size; or
             2596          (b) if a range for the size of the board is established pursuant to Subsection 16-6a-803 (2),
             2597      no fewer than 1/3 of the number of directors:
             2598          (i) fixed in accordance with Subsection 16-6a-803 (2); or


             2599          (ii) in office immediately before the meeting begins, if no number is fixed in accordance
             2600      with Subsection 16-6a-803 (2).
             2601          (3) If a quorum is present when a vote is taken, the affirmative vote of a majority of
             2602      directors present is the act of the board of directors unless the vote of a greater number of directors
             2603      is required by this chapter or the bylaws.
             2604          (4) (a) If provided in the bylaws, for purposes of determining a quorum with respect to a
             2605      particular proposal, and for purposes of casting a vote for or against a particular proposal, a
             2606      director may be considered to be present at a meeting and to vote if the director has granted a
             2607      signed written proxy:
             2608          (i) to another director who is present at the meeting; and
             2609          (ii) authorizing the other director to cast the vote that is directed to be cast by the written
             2610      proxy with respect to the particular proposal that is described with reasonable specificity in the
             2611      proxy.
             2612          (b) Except as provided in this Subsection (4) and as permitted by Section 16-6a-813 ,
             2613      directors may not vote or otherwise act by proxy.
             2614          (5) A director who is present at a meeting of the board of directors when corporate action
             2615      is taken is considered to have assented to all action taken at the meeting unless:
             2616          (a) (i) the director objects at the beginning of the meeting, or promptly upon the director's
             2617      arrival, to holding the meeting or transacting business at the meeting; and
             2618          (ii) after objecting, the director does not vote for or assent to any action taken at the
             2619      meeting;
             2620          (b) the director contemporaneously requests that the director's dissent or abstention as to
             2621      any specific action taken be entered in the minutes of the meeting; or
             2622          (c) the director causes written notice of the director's dissent or abstention as to any
             2623      specific action to be received by:
             2624          (i) the presiding officer of the meeting before adjournment of the meeting; or
             2625          (ii) the nonprofit corporation promptly after adjournment of the meeting.
             2626          (6) The right of dissent or abstention pursuant to Subsection (5) as to a specific action is
             2627      not available to a director who votes in favor of the action taken.
             2628          Section 92. Section 16-6a-817 is enacted to read:
             2629          16-6a-817. Committees of the board.


             2630          (1) Unless otherwise provided in the bylaws and subject to the provisions of Section
             2631      16-6a-906 , the board of directors may:
             2632          (a) create one or more committees of the board; and
             2633          (b) appoint one or more directors to serve on the committees created under Subsection
             2634      (1)(a).
             2635          (2) Unless otherwise provided in the bylaws, the creation of a committee of the board and
             2636      appointment of directors to it shall be approved by the greater of:
             2637          (a) a majority of all the directors in office when the action is taken; or
             2638          (b) the number of directors required by the bylaws to take action under Section 16-6a-816 .
             2639          (3) Unless otherwise provided in the bylaws, a committee of the board and the members
             2640      of the committee are subject to Sections 16-6a-812 through 16-6a-816 , which govern:
             2641          (a) meetings;
             2642          (b) action without meeting;
             2643          (c) notice;
             2644          (d) waiver of notice; and
             2645          (e) quorum and voting requirements.
             2646          (4) To the extent specified in the bylaws or by the board of directors, each committee of
             2647      the board shall have the authority of the board of directors under Section 16-6a-801 .
             2648          (5) The creation of, delegation of authority to, or action by a committee does not alone
             2649      constitute compliance by a director with the standards of conduct described in Section 16-6a-822 .
             2650          (6) (a) Subject to Subsection (6)(b), nothing in this part shall prohibit or restrict a nonprofit
             2651      corporation from establishing in its bylaws or by action of the board of directors or otherwise one
             2652      or more committees, advisory boards, auxiliaries, or other bodies of any kind:
             2653          (i) having the members and rules of procedure as the bylaws or board of directors may
             2654      provide;
             2655          (ii) established to provide the advice, service, and assistance to the nonprofit corporation
             2656      as may be specified in the bylaws or by the board of directors; and
             2657          (iii) established to carry out the duties and responsibilities for the nonprofit corporation,
             2658      as may be specified in the bylaws or by the board of directors.
             2659          (b) Notwithstanding Subsection (6)(a), if any committee or other body established under
             2660      Subsection (6)(a) has one or more members who are entitled to vote on committee matters and who


             2661      are not then also directors, the committee or other body may not exercise any power or authority
             2662      reserved to the board of directors, in this chapter or in the bylaws.
             2663          Section 93. Section 16-6a-818 is enacted to read:
             2664          16-6a-818. Officers.
             2665          (1) (a) A nonprofit corporation shall have the officers designated:
             2666          (i) in its bylaws; or
             2667          (ii) by the board of directors in a manner not inconsistent with the bylaws.
             2668          (b) An officer shall be:
             2669          (i) a natural person; and
             2670          (ii) 18 years of age or older.
             2671          (c) An officer need not be a director or a member of the nonprofit corporation, unless the
             2672      bylaws so prescribe.
             2673          (2) (a) An officer may be appointed by the board of directors or in such other manner as
             2674      the board of directors or bylaws may provide.
             2675          (b) An appointed officer may appoint one or more officers or assistant officers if
             2676      authorized by:
             2677          (i) the bylaws; or
             2678          (ii) the board of directors.
             2679          (3) The bylaws or the board of directors shall delegate to the secretary or to one or more
             2680      other persons responsibility for:
             2681          (a) the preparation and maintenance of:
             2682          (i) minutes of the directors' and members' meetings; and
             2683          (ii) other records and information required to be kept by the nonprofit corporation under
             2684      Section 16-6a-1601 ; and
             2685          (b) authenticating records of the nonprofit corporation.
             2686          (4) The same individual may simultaneously hold more than one office in a nonprofit
             2687      corporation.
             2688          Section 94. Section 16-6a-819 is enacted to read:
             2689          16-6a-819. Duties of officers.
             2690          Each officer shall have the authority and shall perform the duties set forth with respect to
             2691      the office:


             2692          (1) in the bylaws; or
             2693          (2) to the extent not inconsistent with the bylaws, prescribed with respect to the office by:
             2694          (a) the board of directors; or
             2695          (b) an officer authorized by the board of directors.
             2696          Section 95. Section 16-6a-820 is enacted to read:
             2697          16-6a-820. Resignation and removal of officers.
             2698          (1) An officer may resign at any time by giving written notice of resignation to the
             2699      nonprofit corporation.
             2700          (2) A resignation of an officer is effective when the notice is received by the nonprofit
             2701      corporation unless the notice specifies a later effective date.
             2702          (3) If a resignation is made effective at a later date, the board of directors may:
             2703          (a) (i) permit the officer to remain in office until the effective date; and
             2704          (ii) fill the pending vacancy before the effective date if the successor does not take office
             2705      until the effective date; or
             2706          (b) (i) remove the officer at any time before the effective date; and
             2707          (ii) fill the vacancy created by the removal.
             2708          (4) (a) Unless otherwise provided in the bylaws, the board of directors may remove any
             2709      officer at any time with or without cause.
             2710          (b) The bylaws or the board of directors may make provisions for the removal of officers
             2711      by:
             2712          (i) other officers; or
             2713          (ii) the voting members.
             2714          (5) An officer who resigns, is removed, or whose appointment has expired may deliver to
             2715      the division for filing a statement to that effect pursuant to Section 16-6a-1608 .
             2716          Section 96. Section 16-6a-821 is enacted to read:
             2717          16-6a-821. Contract rights with respect to officers.
             2718          (1) The appointment of an officer does not itself create contract rights.
             2719          (2) (a) An officer's removal does not affect the officer's contract rights, if any, with the
             2720      nonprofit corporation.
             2721          (b) An officer's resignation does not affect the nonprofit corporation's contract rights, if
             2722      any, with the officer.


             2723          Section 97. Section 16-6a-822 is enacted to read:
             2724          16-6a-822. General standards of conduct for directors and officers.
             2725          (1) (a) A director shall discharge the director's duties as a director, including the director's
             2726      duties as a member of a committee of the board, in accordance with Subsection (2).
             2727          (b) An officer with discretionary authority shall discharge the officer's duties under that
             2728      authority in accordance with Subsection (2).
             2729          (2) A director or an officer described in Subsection (1) shall discharge the director or
             2730      officer's duties:
             2731          (a) in good faith;
             2732          (b) with the care an ordinarily prudent person in a like position would exercise under
             2733      similar circumstances; and
             2734          (c) in a manner the director or officer reasonably believes to be in the best interests of the
             2735      nonprofit corporation.
             2736          (3) In discharging duties, a director or officer is entitled to rely on information, opinions,
             2737      reports, or statements, including financial statements and other financial data, if prepared or
             2738      presented by:
             2739          (a) one or more officers or employees of the nonprofit corporation whom the director or
             2740      officer reasonably believes to be reliable and competent in the matters presented;
             2741          (b) legal counsel, a public accountant, or another person as to matters the director or
             2742      officer reasonably believes are within the person's professional or expert competence;
             2743          (c) religious authorities or ministers, priests, rabbis, or other persons:
             2744          (i) whose position or duties in the nonprofit corporation, or in a religious organization with
             2745      which the nonprofit corporation is affiliated, the director or officer believes justify reliance and
             2746      confidence; and
             2747          (ii) who the director or officer believes to be reliable and competent in the matters
             2748      presented; or
             2749          (d) in the case of a director, a committee of the board of directors of which the director is
             2750      not a member if the director reasonably believes the committee merits confidence.
             2751          (4) A director or officer is not acting in good faith if the director or officer has knowledge
             2752      concerning the matter in question that makes reliance otherwise permitted by Subsection (3)
             2753      unwarranted.


             2754          (5) A director, regardless of title, may not be considered to be a trustee with respect to:
             2755          (a) the nonprofit corporation; or
             2756          (b) any property held or administered by the nonprofit corporation including property that
             2757      may be subject to restrictions imposed by the donor or transferor of the property.
             2758          (6) A director or officer is not liable to the nonprofit corporation, its members, or any
             2759      conservator or receiver, or any assignee or successor-in-interest of the nonprofit corporation or
             2760      member, for any action taken, or any failure to take any action, as an officer or director, as the case
             2761      may be, unless:
             2762          (a) the director or officer has breached or failed to perform the duties of the office as set
             2763      forth in this section; and
             2764          (b) the breach or failure to perform constitutes:
             2765          (i) gross negligence;
             2766          (ii) willful misconduct; or
             2767          (iii) intentional infliction of harm on:
             2768          (A) the nonprofit corporation; or
             2769          (B) the members of the nonprofit corporation.
             2770          Section 98. Section 16-6a-823 is enacted to read:
             2771          16-6a-823. Limitation of liability of directors.
             2772          (1) (a) Except as provided in Subsection (1)(b) and without limiting the generality of
             2773      Subsection 16-6a-822 (6), a nonprofit corporation may eliminate or limit the liability of a director
             2774      to the nonprofit corporation or to its members for monetary damages for any action taken or any
             2775      failure to take any action as a director, if:
             2776          (i) so provided in:
             2777          (A) the articles of incorporation;
             2778          (B) the bylaws; or
             2779          (C) a resolution; and
             2780          (ii) to the extent permitted in Subsection (3).
             2781          (b) Subsection (1)(a) does not permit a nonprofit corporation from eliminating or limiting
             2782      the liability of a director for:
             2783          (i) the amount of a financial benefit received by a director to which the director is not
             2784      entitled;


             2785          (ii) an intentional infliction of harm on:
             2786          (A) the nonprofit corporation; or
             2787          (B) the members of a nonprofit corporation;
             2788          (iii) an intentional violation of criminal law; or
             2789          (iv) a violation of Section 16-6a-824 .
             2790          (2) A provision authorized under this section may not eliminate or limit the liability of a
             2791      director for any act or omission occurring prior to the date when the provision becomes effective.
             2792          (3) Any provision authorized under this section to be included in the articles of
             2793      incorporation may be adopted in the bylaws or by resolution, but only if the provision is approved
             2794      by the same percentage of members of each voting group as would be required to approve an
             2795      amendment to the articles of incorporation including the provision.
             2796          (4) Any foreign nonprofit corporation authorized to transact business in this state, except
             2797      as otherwise provided by law, may adopt any provision authorized under this section.
             2798          Section 99. Section 16-6a-824 is enacted to read:
             2799          16-6a-824. Liability of directors for unlawful distributions.
             2800          (1) (a) A director who votes for or assents to a distribution made in violation of Section
             2801      16-6a-1301 or the articles of incorporation is personally liable to the corporation for the amount
             2802      of the distribution that exceeds what could have been distributed without violating Section
             2803      16-6a-1301 or the articles of incorporation, if it is established that the director's duties were not
             2804      performed in compliance with Section 16-6a-822 .
             2805          (b) In any proceeding commenced under this section, a director has all of the defenses
             2806      ordinarily available to a director.
             2807          (2) A director held liable under Subsection (1) for an unlawful distribution is entitled to
             2808      contribution:
             2809          (a) from every other director who could be held liable under Subsection (1) for the
             2810      unlawful distribution; and
             2811          (b) from each member who accepted the distribution knowing the distribution was made
             2812      in violation of Section 16-6a-1301 or the articles of incorporation.
             2813          (3) The amount of the contribution from each member under Subsection (2)(b) is the
             2814      amount of the distribution to the member multiplied by the percentage of the amount of
             2815      distribution to all members that exceeded what could have been distributed to members without


             2816      violating Section 16-6a-1301 or the articles of incorporation.
             2817          Section 100. Section 16-6a-825 is enacted to read:
             2818          16-6a-825. Conflicting interest transaction.
             2819          (1) As used in this section, "conflicting interest transaction" means a contract, transaction,
             2820      or other financial relationship between a nonprofit corporation and:
             2821          (a) a director of the nonprofit corporation;
             2822          (b) a party related to a director; or
             2823          (c) an entity in which a director of the nonprofit corporation:
             2824          (i) is a director or officer; or
             2825          (ii) has a financial interest.
             2826          (2) Except as otherwise provided in this section, upon the finding of a conflicting interest
             2827      transaction, in an action properly brought before it, a court may:
             2828          (a) rule that the conflicting interest transaction is void or voidable;
             2829          (b) enjoin or set aside the conflict of interest transaction; or
             2830          (c) determine that the conflicting interest transaction gives rise to an award of damages or
             2831      other sanctions.
             2832          (3) (a) A loan may not be made by a corporation to its directors or officers.
             2833          (b) A director or officer who assents to or participates in the making of a loan in violation
             2834      of Subsection (3)(a) shall be liable to the corporation for the amount of the loan until the
             2835      repayment of the loan.
             2836          (4) (a) If the conditions of Subsection (4)(b) are met, a conflicting interest transaction may
             2837      not be void or voidable or be enjoined, set aside, or give rise to an award of damages or other
             2838      sanctions in a proceeding by a member or by or in the right of the nonprofit corporation, solely
             2839      because:
             2840          (i) the conflicting interest transaction involves:
             2841          (A) a director of the nonprofit corporation;
             2842          (B) a party related to a director; or
             2843          (C) an entity in which a director of the nonprofit corporation is a director or officer or has
             2844      a financial interest;
             2845          (ii) the director is present at or participates in the meeting of the nonprofit corporation's
             2846      board of directors or of the committee of the board of directors that authorizes, approves, or ratifies


             2847      the conflicting interest transaction; or
             2848          (iii) the director's vote is counted for the purpose described in Subsection (4)(a)(ii).
             2849          (b) Subsection (4)(a) applies if:
             2850          (i) (A) the material facts as to the director's relationship or interest and as to the conflicting
             2851      interest transaction are disclosed or are known to the board of directors or the committee; and
             2852          (B) the board of directors or committee in good faith authorizes, approves, or ratifies the
             2853      conflicting interest transaction by the affirmative vote of a majority of the disinterested directors,
             2854      even though the disinterested directors are less than a quorum;
             2855          (ii) (A) the material facts as to the director's relationship or interest and as to the
             2856      conflicting interest transaction are disclosed or are known to the members entitled to vote on the
             2857      conflicting interest transaction; and
             2858          (B) the conflicting interest transaction is specifically authorized, approved, or ratified in
             2859      good faith by a vote of the members entitled to vote thereon; or
             2860          (iii) the conflicting interest transaction is fair as to the nonprofit corporation.
             2861          (5) Common or interested directors may be counted in determining the presence of a
             2862      quorum at a meeting of the board of directors or of a committee that authorizes, approves, or
             2863      ratifies the conflicting interest transaction.
             2864          Section 101. Section 16-6a-826 is enacted to read:
             2865          16-6a-826. Common members, directors, or officers.
             2866          (1) Two or more nonprofit corporations may have members, directors, or officers that are
             2867      common to each nonprofit corporation.
             2868          (2) The fact of common members, directors, or officers in one or more nonprofit
             2869      corporations may not, by itself, create an inference that the nonprofit corporations individually or
             2870      collectively:
             2871          (a) are agents or alter egos of one another; or
             2872          (b) have been formed or availed of for an improper purpose.
             2873          (3) The doctrine of "piercing the corporate veil" may not be applied to one or more
             2874      nonprofit corporations solely because of the fact of common members, directors, or officers.
             2875          Section 102. Section 16-6a-901 is enacted to read:
             2876     
Part 9. Indemnification

             2877          16-6a-901. Indemnification definitions.


             2878          As used in this part:
             2879          (1) (a) "Director" means an individual who:
             2880          (i) is or was a director of a nonprofit corporation; or
             2881          (ii) while a director of a nonprofit corporation at the nonprofit corporation's request, is or
             2882      was serving as a director, officer, partner, member, manager, trustee, employee, fiduciary, or agent
             2883      of:
             2884          (A) another domestic or foreign corporation;
             2885          (B) another nonprofit corporation;
             2886          (C) another person; or
             2887          (D) an employee benefit plan.
             2888          (b) A director is considered to be serving an employee benefit plan at the nonprofit
             2889      corporation's request if the director's duties to the nonprofit corporation also impose duties on, or
             2890      otherwise involve services by, the director to the employee benefit plan or to participants in or
             2891      beneficiaries of the employee benefit plan.
             2892          (c) "Director" includes, unless the context requires otherwise, the estate or personal
             2893      representative of a director.
             2894          (2) "Expenses" includes attorneys' fees.
             2895          (3) "Liability" means the obligation incurred with respect to a proceeding to pay a
             2896      judgment, settlement, penalty, or fine, including:
             2897          (a) an excise tax assessed with respect to an employee benefit plan; or
             2898          (b) reasonable expenses.
             2899          (4) "Nonprofit corporation" includes any domestic or foreign entity that is a predecessor
             2900      of a nonprofit corporation by reason of a merger or other transaction in which the predecessor's
             2901      existence ceased upon consummation of the transaction.
             2902          (5) (a) "Officer," "employee," "fiduciary," and "agent" include any person who, while
             2903      serving the indicated relationship to the nonprofit corporation, at the nonprofit corporation's
             2904      request, is or was serving as a director, officer, partner, trustee, employee, fiduciary, or agent of:
             2905          (i) another domestic or foreign corporation;
             2906          (ii) another person; or
             2907          (iii) an employee benefit plan.
             2908          (b) An officer, employee, fiduciary, or agent is considered to be serving an employee


             2909      benefit plan at the nonprofit corporation's request if that person's duties to the nonprofit
             2910      corporation also impose duties on, or otherwise involve services by, that person to the plan or
             2911      participants in, or beneficiaries of the plan.
             2912          (c) Unless the context requires otherwise, "officer," "employee," "fiduciary," and "agent"
             2913      include the estates or personal representatives of the officer, employee, fiduciary, or agent.
             2914          (6) (a) "Official capacity" means:
             2915          (i) when used with respect to a director, the office of director in a corporation; and
             2916          (ii) when used with respect to a person other than a director, as contemplated in Section
             2917      16-6a-907 , the office in a corporation held by the officer or the employment, fiduciary, or agency
             2918      relationship undertaken by the person on behalf of the corporation.
             2919          (b) "Official capacity" does not include service for any:
             2920          (i) other foreign or domestic corporation;
             2921          (ii) other person; or
             2922          (iii) employee benefit plan.
             2923          (7) "Party" includes an individual who was, is, or is threatened to be made a named
             2924      defendant or respondent in a proceeding.
             2925          (8) "Proceeding" means any threatened, pending, or completed action, suit, or proceeding,
             2926      whether civil, criminal, administrative, or investigative and whether formal or informal.
             2927          Section 103. Section 16-6a-902 is enacted to read:
             2928          16-6a-902. Authority to indemnify directors.
             2929          (1) Except as provided in Subsection (4), a nonprofit corporation may indemnify an
             2930      individual made a party to a proceeding because the individual is or was a director, against liability
             2931      incurred in the proceeding if:
             2932          (a) the individual's conduct was in good faith;
             2933          (b) the individual reasonably believed that the individual's conduct was in, or not opposed
             2934      to, the corporation's best interests; and
             2935          (c) in the case of any criminal proceeding, the individual had no reasonable cause to
             2936      believe the individual's conduct was unlawful.
             2937          (2) A director's conduct with respect to any employee benefit plan for a purpose the
             2938      director reasonably believed to be in or not opposed to the interests of the participants in and
             2939      beneficiaries of the plan is conduct that satisfies the requirement of Subsection (1)(b).


             2940          (3) The termination of a proceeding by judgment, order, settlement, conviction, or upon
             2941      a plea of nolo contendere or its equivalent is not, of itself, determinative that the director did not
             2942      meet the standard of conduct described in this section.
             2943          (4) A nonprofit corporation may not indemnify a director under this section:
             2944          (a) in connection with a proceeding by or in the right of the nonprofit corporation in which
             2945      the director was adjudged liable to the nonprofit corporation; or
             2946          (b) in connection with any other proceeding charging that the director derived an improper
             2947      personal benefit, whether or not involving action in the director's official capacity, in which
             2948      proceeding the director was adjudged liable on the basis that the director derived an improper
             2949      personal benefit.
             2950          (5) Indemnification permitted under this section in connection with a proceeding by or in
             2951      the right of the nonprofit corporation is limited to reasonable expenses incurred in connection with
             2952      the proceeding.
             2953          Section 104. Section 16-6a-903 is enacted to read:
             2954          16-6a-903. Mandatory indemnification of directors.
             2955          (1) Unless limited by its articles of incorporation, a nonprofit corporation shall indemnify
             2956      a director described in Subsection (2) against reasonable expenses incurred by the director in
             2957      connection with the proceeding or claim with respect to which the director has been successful.
             2958          (2) Subsection (1) applies to a director who was successful, on the merits or otherwise, in
             2959      the defense of:
             2960          (a) any proceeding to which the director was a party because the director is or was a
             2961      director of the nonprofit corporation; or
             2962          (b) any claim, issue, or matter in the proceeding, to which the director was a party because
             2963      the director is or was a director of the nonprofit corporation.
             2964          Section 105. Section 16-6a-904 is enacted to read:
             2965          16-6a-904. Advance of expenses for directors.
             2966          (1) A nonprofit corporation may pay for or reimburse the reasonable expenses incurred by
             2967      a director who is a party to a proceeding in advance of final disposition of the proceeding if:
             2968          (a) the director furnishes the nonprofit corporation a written affirmation of the director's
             2969      good faith belief that the director has met the applicable standard of conduct described in Section
             2970      16-6a-902 ;


             2971          (b) the director furnishes the nonprofit corporation a written undertaking, executed