§ 35-14-150 — Effect Of Ratification

35-14-150 . Effect of ratification. From and after the validation effective time and without regard to the 120-day period during which a claim may be brought under 35-14-152 :
(1) each defective corporate action ratified in accordance with 35-14-147 may not be void or voidable as a result of the failure of authorization identified in the action taken under 35-14-147 (1) or (2) and is considered a valid corporate action effective as of the date of the defective corporate action;
(2) the issuance of each putative share or fraction of a putative share purportedly issued pursuant to a defective corporate action identified in the action taken under 35-14-147 may not be void or voidable, and such putative share or fraction of a putative share is considered an identical share or fraction of a valid share as of the time it was purportedly issued; and
(3) any corporate action taken subsequent to the defective corporate action ratified in accordance with 35-14-145 through 35-14-152 in reliance on the defective corporate action having been validly effected and any subsequent defective corporate action resulting directly or indirectly from the original defective corporate action are valid as of the time taken.

Legislative History

En. Sec. 24, Ch. 271, L. 2019.