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
© 2001 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Thu Jan 31 03:30:01 CST 2002
URL: /DOCS/GA/79GA/Legislation/SF/00400/SF00495/010319.html
jhf