Section 21-2040.01: Interested Director Transactions in Nebraska - A Proposed Interpretation
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Authors
Clare, Timothy F.
Issue Date
1992
Volume
25
Issue
Type
Journal Article
Language
Keywords
Alternative Title
Abstract
INTRODUCTION|The duty of loyalty a director owes to the corporation and its shareholders has been beset with more varying judicial interpretations than most areas of corporate law. The primary reason for the varying interpretations is the departure by the judicial system from the common-law doctrine of strict voidability. In addition, numerous state jurisdictions, including Nebraska, have adopted statutes that validate transactions involving interested directors. Such statutes preclude transactions between a corporation and one or more of its directors from being declared void if certain statutory tests are met. The Nebraska Supreme Court has yet to interpret section 212040.01, the Nebraska statute governing transactions involving interested directors, despite the prevalence of interested directors in Nebraska corporations. Consequently, certain questions regarding transactions involving interested directors remain unresolved...
Description
Citation
25 Creighton L. Rev. 603 (1991-1992)
Publisher
Creighton University School of Law