§ 28-13-6-4 — Beneficial owner of shares; recognition procedure; disclosure procedure; sanctions to ensure compliance

Indiana § 28-13-6-4

• Jurisdiction: Indiana
• Art. 13: CORPORATE GOVERNANCE
• Ch. 6: 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 the corporation's 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:
(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.14-1992, SEC.163.