§ 23-1-30-4 — Beneficial owners of shares; recognition procedure; disclosure procedure

Indiana § 23-1-30-4

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 1: INDIANA BUSINESS CORPORATION LAW
• Ch. 30: Voting by Shareholders

Text

(a) A corporation may establish a recognition
procedure by which the beneficial owner of shares that are registered
in the name of a nominee is recognized by the corporation as the
shareholder. The extent of this recognition may be determined in the
recognition procedure.
(b) A corporation may establish a disclosure procedure by which the
names of beneficial owners of its shares shall, to the extent not
prohibited by law, be disclosed to the corporation. A corporation may
not establish a procedure requiring disclosure of the names of the
beneficial owners of a private trust created in good faith and not for the
purpose of circumventing a disclosure procedure adopted pursuant to
this section. The corporation may adopt reasonable sanctions to ensure
compliance with its disclosure procedure, including without limitation:
(1) prohibiting the voting of;
(2) providing for mandatory or optional reacquisition of; or
(3) the withholding or payment into escrow of dividends with
respect to;
shares as to which the beneficial owner's name is not disclosed as
required by the disclosure procedure.

Legislative History

As added by P.L.149-1986, SEC.14.