District Of Columbia § 29-306.70 - Definitions.
Full text of District Of Columbia D.C. Code § 29-306.70 — Definitions., with citation guidance and answers to common questions.
§ 29-306.70. Definitions.
29-306.70For the purposes of this part, the term:
“Control”, including the term “controlled by”, means:
Having the power, directly or indirectly, to elect or remove a majority of the members of the board of directors or other governing body of an entity, whether through the ownership of voting shares or interests, by contract, or otherwise; or
Being subject to a majority of the risk of loss from the entity’s activities or entitled to receive a majority of the entity’s residual returns.
“Director’s conflicting interest transaction” means a transaction effected or proposed to be effected by the corporation, or by an entity controlled by the corporation:
To which, at the relevant time, the director is a party;
Respecting which, at the relevant time, the director had knowledge and a material financial interest known to the director; or
Respecting which, at the relevant time, the director knew that a related person was a party or had a material financial interest.
“Fair to the corporation” means, for the purposes of , that the transaction as a whole was beneficial to the corporation, taking into appropriate account whether it was:
Fair in terms of the director’s dealings with the corporation; and
Comparable to what might have been obtainable in an arm’s length transaction, given the consideration paid or received by the corporation.
“Material financial interest” means a financial interest in a transaction that would reasonably be expected to impair the objectivity of the director’s judgment when participating in action on the authorization of the transaction.
“Related person” means:
The director’s spouse;
A child, stepchild, grandchild, parent, step parent, grandparent, sibling, step sibling, half sibling, aunt, uncle, niece or nephew, or spouse of any thereof, of the director or of the director’s spouse;
An individual living in the same home as the director;
An entity, other than the corporation or an entity controlled by the corporation, controlled by the director or any person specified above in this paragraph;
A domestic or foreign:
Business or nonprofit corporation, other than the corporation or an entity controlled by the corporation, of which the director is a governor;
Unincorporated entity of which the director is a governor or a member of the governing body; or
Individual, trust, or estate for whom or of which the director is a trustee, guardian, personal representative, or like fiduciary; or
A person that is, or an entity that is controlled by, an employer of the director.
“Relevant time” means:
The time at which directors’ action respecting the transaction is taken in compliance with ; or
If the transaction is not brought before the board of directors of the corporation, or its committee, for action under , at the time the corporation, or an entity controlled by the corporation, becomes legally obligated to consummate the transaction.
“Required disclosure” means disclosure of:
The existence and nature of the director’s conflicting interest; and
All facts known to the director respecting the subject matter of the transaction that a director free of such conflicting interest would reasonably believe to be material in deciding whether to proceed with the transaction.
Annotations
Source: official District Of Columbia text · Last verified 2026-08-27
Frequently Asked Questions About District Of Columbia § 29-306.70
What does D.C. Code § 29-306.70 cover?
Section 29-306.70 ("Definitions.") is part of the D.C. Code, the codified statutory law of District Of Columbia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite District Of Columbia § 29-306.70?
A common citation format is "D.C. Code § 29-306.70" (District Of Columbia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of District Of Columbia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the District Of Columbia official source linked on this page or consult a licensed District Of Columbia attorney.
How does District Of Columbia § 29-306.70 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in District Of Columbia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in District Of Columbia.