South Dakota § 47-1A-732 - Shareholder agreements--Effectiveness.

§ 47-1A-732. Shareholder agreements--Effectiveness.

An agreement among the shareholders of a corporation that complies with this section is effective among the shareholders and the corporation even though it is inconsistent with one or more other provisions of this chapter in that it:

(1)    Eliminates the board of directors or restricts the discretion or powers of the board of directors;

(2)    Governs the authorization or making of distributions whether or not in proportion to ownership of shares, subject to the limitations in §§ 47-1A-640 to 47-1A-640.5, inclusive;

(3)    Establishes who shall be directors or officers of the corporation, or their terms of office or manner of selection or removal;

(4)    Governs, in general or in regard to specific matters, the exercise or division of voting power by or between the shareholders and directors or by or among any of them, including use of weighted voting rights or director proxies;

(5)    Establishes the terms and conditions of any agreement for the transfer or use of property or the provision of services between the corporation and any shareholder, director, officer, or employee of the corporation or among any of them;

(6)    Transfers to one or more shareholders or other persons all or part of the authority to exercise the corporate powers or to manage the business and affairs of the corporation, including the resolution of any issue about which there exists a deadlock among directors or shareholders;

(7)    Requires dissolution of the corporation at the request of one or more of the shareholders or upon the occurrence of a specified event or contingency; or

(8)    Otherwise governs the exercise of the corporate powers or the management of the business and affairs of the corporation or the relationship among the shareholders, the directors, and the corporation, or among any of them, and is not contrary to public policy.

Source: SL 2005, ch 239, § 116.