Nevada § 78.140 - Restrictions on transactions involving interested directors or officers; compensation of directors

§ 78.140. Restrictions on transactions involving interested directors or officers; compensation of directors

1. A contract or other transaction is not void or voidable solely because: (a) The contract or transaction is between a corporation and: (1) One or more of its directors or officers; or (2) Another corporation, firm or association in which one or more of its directors

or officers are directors or officers or are financially interested; (b) A common or interested director or officer: (1) Is present at the meeting of the board of directors or a committee thereof which

authorizes or approves the contract or transaction; or (2) Joins in the signing of a written consent which authorizes or approves the contract

or transaction pursuant to subsection 2 of NRS 78.315 ; or (c) The vote or votes of a common or interested director are counted for the purpose

of authorizing or approving the contract or transaction, if one of the circumstances specified in subsection 2 exists. 2. The circumstances in which a contract or other transaction is not void or voidable

pursuant to subsection 1 are: (a) The fact of the common directorship, office or financial interest is known to

the board of directors or committee, and the directors or members of the committee,

other than any common or interested directors or members of the committee, approve

or ratify the contract or transaction in good faith. (b) The fact of the common directorship, office or financial interest is known to

the stockholders, and stockholders holding a majority of the voting power approve

or ratify the contract or transaction in good faith. The votes of the common or interested directors or officers must be counted in any

such vote of stockholders. (c) The fact of the common directorship, office or financial interest is not known

to the director or officer at the time the transaction is brought before the board

of directors of the corporation for action. (d) The contract or transaction is fair as to the corporation at the time it is authorized

or approved. 3. Common or interested directors or common or interested members of the committee

may be counted in determining the presence of a quorum at a meeting of the board of

directors or a committee thereof which authorizes, approves or ratifies a contract

or transaction, and if the votes of the common or interested directors or common or

interested members of the committee are not counted at the meeting, then a majority

of the disinterested directors or disinterested members of the committee may authorize,

approve or ratify a contract or transaction. 4. The fact that the vote or votes of the common or interested director or directors,

or common or interested member or members of the committee, are not counted for purposes

of subsection 2 does not prohibit any authorization, approval or ratification of a

contract or transaction to be given by written consent pursuant to subsection 2 of NRS 78.315 , regardless of whether the common or interested director signs such written consent

or abstains in writing from providing consent. 5. Unless otherwise provided in the articles of incorporation or the bylaws, the board

of directors, without regard to personal interest, may establish the compensation

of directors for services in any capacity. If the board of directors establishes the compensation of directors pursuant to

this subsection, such compensation is presumed to be fair to the corporation unless

proven unfair by a preponderance of the evidence.