Text: SF00494 Text: SF00496 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15E.205, Code 2001, is amended by 1 2 adding the following new subsection: 1 3 NEW SUBSECTION. 1A. Notwithstanding section 490.831, a 1 4 transaction for financing an Iowa agricultural industry 1 5 venture as provided in section 15E.209 is void, if any 1 6 director of the corporation has a direct or indirect interest 1 7 in the transaction as provided in section 490.831. Each 1 8 director shall file a disclosure statement with the department 1 9 and corporation listing any potential conflicts of interest, 1 10 as provided in the corporation's articles of incorporation. 1 11 Sec. 2. APPLICABILITY. This Act applies to the board of 1 12 directors of the Iowa agricultural industry finance 1 13 corporation, regardless of whether the board is the initial 1 14 board of directors or a permanent board of directors as 1 15 provided in sections 15E.205 and 15E.206. 1 16 Sec. 3. EFFECTIVE DATE. This Act, being deemed of 1 17 immediate importance, takes effect upon enactment. 1 18 EXPLANATION 1 19 Division XIX of Code chapter 15E, referred to as the "Iowa 1 20 Agricultural Industry Finance Act", authorizes the formation 1 21 of one or more Iowa agricultural industry finance 1 22 corporations. The purpose of such a corporation is to 1 23 facilitate opportunities for local agricultural producer-led 1 24 ventures and to expand production and processing of high-value 1 25 agricultural products. Such a corporation is governed by a 1 26 board of directors. Code section 15E.206 provides for the 1 27 organization of the board of one corporation by an initial 1 28 board of directors. 1 29 This bill regulates conflicts of interest by a 1 30 corporation's board of directors. Code section 490.831 1 31 provides that a conflict of interest transaction is not 1 32 voidable by the corporation if the facts of the transaction 1 33 are known to the board of directors or the transaction is fair 1 34 to the corporation. 1 35 The bill provides that notwithstanding that section, a 2 1 transaction for financing an Iowa agricultural industry 2 2 venture is void, if any director of the corporation has a 2 3 direct or indirect interest in the transaction as provided in 2 4 Code section 490.831. The bill requires each director to file 2 5 a disclosure statement with the department of economic 2 6 development and corporation listing any potential conflicts of 2 7 interest. 2 8 The bill applies to the initial and permanent board of 2 9 directors. 2 10 The bill becomes effective upon enactment. 2 11 LSB 3071SV 79 2 12 da/cls/14
Text: SF00494 Text: SF00496 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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