Mississippi Code Title 79. Corporations, Associations, and Partnerships § 79-4-1.43 § 79-4-1.43. Qualified director

(a) A “qualified director” is a director who, at the time action is to be taken under:

(1)  Section 79-4-7.44 , does not have (i) a material interest in the outcome of the proceeding, or (ii) a material relationship with a person who has such an interest;

(2)  Section 79-4-8.53 or 79-4-8.55, (i) is not a party to the proceeding, (ii) is not a director as to whom a transaction is a director's conflicting interest transaction or who sought a disclaimer of the corporation's interest in a business opportunity under Section 79-4-8.70 , which transaction or disclaimer is challenged in the proceeding, and (iii) does not have a material relationship with a director described in either clause (i) or clause (ii) of this subsection (a)(2);

(3)  Section 79-4-8.62 , is not a director (i) as to whom the transaction is a director's conflicting interest transaction, or (ii) who has a material relationship with another director as to whom the transaction is a director's conflicting interest transaction;  or

(4)  Section 79-4-8.70 , would be a qualified director under subsection (a)(3) if the business opportunity were a director's conflicting interest transaction.

(b) For purposes of this section:

(1) “Material relationship” means a familial, financial, professional, employment or other relationship that would reasonably be expected to impair the objectivity of the director's judgment when participating in the action to be taken;  and

(2) “Material interest” means an actual or potential benefit or detriment (other than one which would devolve on the corporation or the shareholders generally) that would reasonably be expected to impair the objectivity of the director's judgment when participating in the action to be taken.

(c) The presence of one or more of the following circumstances shall not automatically prevent a director from being a qualified director:

(1) Nomination or election of the director to the current board by any director who is not a qualified director with respect to the matter (or by any person that has a material relationship with that director), acting alone or participating with others;

(2) Service as a director of another corporation of which a director who is not a qualified director with respect to the matter (or any individual who has a material relationship with that director), is or was also a director;  or

(3) With respect to action to be taken under Section 79-4-7.44 , status as a named defendant, as a director against whom action is demanded, or as a director who approved the conduct being challenged.

Cite this article: FindLaw.com - Mississippi Code Title 79. Corporations, Associations, and Partnerships § 79-4-1.43 § 79-4-1.43. Qualified director - last updated January 01, 2018 | https://codes.findlaw.com/ms/title-79-corporations-associations-and-partnerships/ms-code-sect-79-4-1-43.html


FindLaw Codes are provided courtesy of Thomson Reuters Westlaw, the industry-leading online legal research system. For more detailed codes research information, including annotations and citations, please visit Westlaw.

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.

Copied to clipboard