16-6a-1102. Action on plan of
merger.
(1) After adopting the plan of merger, the board of
directors of each domestic nonprofit corporation that is a party to the merger
shall submit the plan of merger to its members, if any are entitled to vote on
the plan of merger, for approval.
(2) If the domestic nonprofit corporation has members
entitled to vote with respect to the approval of a plan of merger, a plan of
merger is approved by the members if:
(a) (i) the board of directors recommends the plan of
merger to the members entitled to vote on the plan of merger; or
(ii) (A)
the board of directors determines that, because of conflict of interest or
other special circumstances, it should make no recommendation; and
(B)
communicates the basis for its determination to the members with the plan; and
(b) the members entitled to vote on the plan of merger
approve the plan as provided in Subsection (7).
(3) After adopting the plan of merger, the board of
directors of each domestic nonprofit corporation party to the merger shall submit
the plan of merger for written approval by any person or persons:
(a) whose approval is required by the articles of
incorporation of the domestic nonprofit corporation; and
(b) as required by Section 16-6a-1013 for
an amendment to the articles of incorporation or bylaws.
(4) (a) If the domestic nonprofit corporation does not have
members entitled to vote on a merger, the merger shall be approved and adopted
by a majority of the directors elected and in office at the time the plan of
merger is considered by the board of directors.
(b) The domestic nonprofit corporation shall provide
notice of any meeting of the board of directors at which the approval described
in Subsection (4)(a) is to be obtained in accordance with Section 16-6a-814.
(c) The notice required by Subsection (4)(b) shall
state that the purpose, or one of the purposes, of the meeting is to consider
the proposed merger.
(5) The board of directors may condition the effectiveness
of the plan of merger on any basis.
(6) (a) The domestic nonprofit corporation shall give
notice, in accordance with Section 16-6a-704,
to each member entitled to vote on the plan of merger of the members' meeting
at which the plan will be voted on.
(b) The notice required by Subsection (6)(a) shall:
(i) state
that the purpose, or one of the purposes, of the meeting is to consider the
plan of merger; and
(ii)
contain or be accompanied by a copy of the plan of merger or a summary of the
plan of merger.
(7) The plan of merger shall be approved by the votes
required by Sections 16-6a-714 and 16-6a-715 by
every voting group entitled to vote on the plan of merger unless a greater vote
is required by:
(a) this chapter;
(b) the articles of incorporation;
(c) bylaws adopted by the members; or
(d) the board of directors acting pursuant to
Subsection (5).
(8) Separate voting by voting groups is required on a plan
of merger if the plan contains a provision that, if contained in an amendment
to the articles of incorporation, would require action by one or more separate
voting groups on the amendment.
Amended by Chapter 228, 2006 General Session