180.0825(2)(a)
(a) A majority of all the directors in office when the action is taken.
180.0825(2)(b)
(b) The number of directors required by the articles of incorporation or bylaws to take action under
s. 180.0824 (3).
180.0825(3)
(3) The board of directors may provide by resolution that any vacancies on the committee shall be filled by the affirmative vote of a majority of the remaining committee members.
180.0825(5)
(5) To the extent specified by the board of directors or in the articles of incorporation or bylaws, each committee may exercise the authority of the board of directors, except that a committee may not do any of the following:
180.0825(5)(b)
(b) Approve or propose to shareholders action that this chapter requires be approved by shareholders.
180.0825(5)(c)
(c) Fill vacancies on the board of directors or, except as provided in
sub. (3), on any of its committees.
180.0825(5)(f)
(f) Approve a plan of merger not requiring shareholder approval.
180.0825(5)(g)
(g) Authorize or approve reacquisition of shares, except according to a formula or method prescribed by the board of directors.
180.0825(5)(h)
(h) Authorize or approve the issuance or sale or contract for sale of shares, or determine the designation and relative rights, preferences and limitations of a class or series of shares, except that the board of directors may authorize a committee or a senior executive officer of the corporation to do so within limits prescribed by the board of directors.
180.0825(6)
(6) Unless otherwise provided by the board of directors in creating the committee, a committee may employ counsel, accountants and other consultants to assist it in the exercise of authority.
180.0825(7)
(7) The creation of a committee, delegation of authority to a committee or action by a committee does not relieve the board of directors or any of its members of any responsibility imposed upon the board of directors or its members by law.
180.0825 History
History: 1989 a. 303.
180.0826
180.0826
Reliance by directors or officers. Unless the director or officer has knowledge that makes reliance unwarranted, a director or officer, in discharging his or her duties to the corporation, may rely on information, opinions, reports or statements, valuation reports any of which may be written or oral, formal or informal, including financial statements, valuation reports and other financial data, if prepared or presented by any of the following:
180.0826(1)
(1) An officer or employee of the corporation whom the director or officer believes in good faith to be reliable and competent in the matters presented.
180.0826(2)
(2) Legal counsel, certified public accountants licensed or certified under
ch. 442, or other persons as to matters that the director or officer believes in good faith are within the person's professional or expert competence.
180.0826(3)
(3) In the case of reliance by a director, a committee of the board of directors of which the director is not a member if the director believes in good faith that the committee merits confidence.
180.0826 History
History: 1989 a. 303;
2001 a. 16.
180.0827
180.0827
Consideration of interests in addition to shareholders' interests. In discharging his or her duties to the corporation and in determining what he or she believes to be in the best interests of the corporation, a director or officer may, in addition to considering the effects of any action on shareholders, consider the following:
180.0827(1)
(1) The effects of the action on employees, suppliers and customers of the corporation.
180.0827(2)
(2) The effects of the action on communities in which the corporation operates.
180.0827(3)
(3) Any other factors that the director or officer considers pertinent.
180.0827 History
History: 1989 a. 303.
180.0828
180.0828
Limited liability of directors. 180.0828(1)
(1) Except as provided in
sub. (2), a director is not liable to the corporation, its shareholders, or any person asserting rights on behalf of the corporation or its shareholders, for damages, settlements, fees, fines, penalties or other monetary liabilities arising from a breach of, or failure to perform, any duty resulting solely from his or her status as a director, unless the person asserting liability proves that the breach or failure to perform constitutes any of the following:
180.0828(1)(a)
(a) A willful failure to deal fairly with the corporation or its shareholders in connection with a matter in which the director has a material conflict of interest.
180.0828(1)(b)
(b) A violation of criminal law, unless the director had reasonable cause to believe that his or her conduct was lawful or no reasonable cause to believe that his or her conduct was unlawful.
180.0828(1)(c)
(c) A transaction from which the director derived an improper personal profit.
180.0828(2)
(2) A corporation may limit the immunity provided under this section by its articles of incorporation. A limitation under this subsection applies if the cause of action against a director accrues while the limitation is in effect.
180.0828 History
History: 1989 a. 303.
180.0831
180.0831
Director conflict of interest. 180.0831(1)
(1) In this section, "conflict of interest transaction" means a transaction with the corporation in which a director of the corporation has a direct or indirect interest.
180.0831(2)
(2) A conflict of interest transaction is not voidable by the corporation solely because of the director's interest in the transaction if any of the following is true:
180.0831(2)(a)
(a) The material facts of the transaction and the director's interest were disclosed or known to the board of directors or a committee of the board of directors and the board of directors or committee authorized, approved or specifically ratified the transaction under
sub. (4).
180.0831(2)(b)
(b) The material facts of the transaction and the director's interest were disclosed or known to the shareholders entitled to vote and they authorized, approved or specifically ratified the transaction under
sub. (5).
180.0831(3)
(3) For purposes of this section, the circumstances in which a director of the corporation has an indirect interest in a transaction include but are not limited to a transaction under any of the following circumstances:
180.0831(3)(a)
(a) Another entity in which the director has a material financial interest or in which the director is a general partner is a party to the transaction.
180.0831(3)(b)
(b) Another entity of which the director is a director, officer or trustee is a party to the transaction and the transaction is or, because of its significance to the corporation, should be considered by the board of directors of the corporation.
180.0831(4)
(4) For purposes of
sub. (2) (a), a conflict of interest transaction is authorized, approved or specifically ratified if it receives the affirmative vote of a majority of the directors on the board of directors or on the committee acting on the transaction, who have no direct or indirect interest in the transaction. If a majority of the directors who have no direct or indirect interest in the transaction vote to authorize, approve or ratify the transaction, a quorum is present for the purpose of taking action under this section. The presence of, or a vote cast by, a director with a direct or indirect interest in the transaction does not affect the validity of any action taken under
sub. (2) (a) if the transaction is otherwise authorized, approved or ratified as provided in this section.
180.0831(5)
(5) For purposes of
sub. (2) (b), a conflict of interest transaction is authorized, approved or specifically ratified if it receives the vote of a majority of the shares entitled to be counted under this subsection. Shares owned by or voted under the control of a director who has a direct or indirect interest in the transaction, and shares owned by or voted under the control of an entity described in
sub. (3) (a), may not be counted in a vote of shareholders to determine whether to authorize, approve or ratify a conflict of interest transaction under
sub. (2) (b). The vote of those shares shall be counted in determining whether the transaction is approved under other sections of this chapter. A majority of the shares, whether or not present, that are entitled to be counted in a vote on the transaction under this subsection constitutes a quorum for the purpose of taking action under this section.
180.0831 History
History: 1989 a. 303.
180.0832(1)(1) Except as provided in
sub. (3), a corporation may not lend money to or guarantee the obligation of a director of the corporation unless any of the following occurs:
180.0832(1)(a)
(a) The particular loan or guarantee is approved by a majority of the votes represented by the outstanding voting shares of all classes, voting as a single voting group, except the votes of shares owned by or voted under the control of the benefited director.
180.0832(1)(b)
(b) The corporation's board of directors determines that the loan or guarantee benefits the corporation and either approves the specific loan or guarantee or a general plan authorizing loans and guarantees.
180.0832(2)
(2) The fact that a loan or guarantee is made in violation of this section does not affect the borrower's liability on the loan.
180.0832(3)
(3) This section does not apply to an advance to a director that is permitted by
s. 180.0853 or
180.0858 or that is made to defray expenses incurred by the director in the ordinary course of the corporation's business.
180.0832 History
History: 1989 a. 303.
180.0833
180.0833
Liability for unlawful distributions. 180.0833(1)(1) Except as provided in
sub. (3), a director who votes for or assents to a distribution made in violation of
s. 180.0640 or the articles of incorporation is personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating
s. 180.0640 or the articles of incorporation, if it is established that the director's vote or assent constitutes conduct described by
s. 180.0828 (1) (a),
(b),
(c) or
(d). In any proceeding brought under this section, a director has all of the defenses ordinarily available to a director.
180.0833(2)
(2) A director who is liable under
sub. (1) for an unlawful distribution is entitled to contribution from all of the following persons:
180.0833(2)(a)
(a) Every other director who could be held liable under
sub. (1) for the unlawful distribution.
180.0833(2)(b)
(b) Each shareholder for the amount that the shareholder accepted knowing that the distribution was made in violation of
s. 180.0640 or the articles of incorporation.
180.0833(3)
(3) A proceeding under this section is barred unless it is brought within 2 years after the date on which the effect of the distribution was measured under
s. 180.0640 (5).
180.0833 History
History: 1989 a. 303.
180.0840(1)(1) A corporation shall have the officers described in its bylaws or appointed by its board of directors by resolution not inconsistent with the bylaws.
180.0840(2)
(2) A duly appointed officer may appoint one or more officers or assistant officers if authorized by the bylaws or the board of directors.
180.0840(3)
(3) The same natural person may simultaneously hold more than one office in a corporation.
180.0840 History
History: 1989 a. 303;
1991 a. 16.
180.0841
180.0841
Duties of officers. Each officer has the authority and shall perform the duties set forth in the bylaws or, to the extent not inconsistent with the bylaws, the duties prescribed by the board of directors or by direction of an officer authorized by the bylaws or by the board of directors to prescribe the duties of other officers.
180.0841 History
History: 1989 a. 303.
180.0843
180.0843
Resignation and removal of officers. 180.0843(1)
(1) An officer may resign at any time by delivering notice to the corporation that complies with
s. 180.0141. The resignation is effective when the notice is delivered, unless the notice specifies a later effective date and the corporation accepts the later effective date. If a resignation is effective at a later date, the corporation's board of directors may fill the pending vacancy before the effective date if the board of directors provides that the successor may not take office until the effective date.
180.0843(2)
(2) The board of directors may remove any officer and, unless restricted by the bylaws or by the board of directors, an officer may remove any officer or assistant officer appointed by that officer under
s. 180.0840 (2), at any time, with or without cause and notwithstanding the contract rights, if any, of the officer removed.
180.0843 History
History: 1989 a. 303.
180.0844
180.0844
Contract rights of officers. 180.0844(1)
(1) The appointment of an officer does not itself create contract rights.
180.0844(2)
(2) Except as provided in
s. 180.0843 (2), an officer's resignation or removal is subject to any remedies provided by any contract between the officer and the corporation or otherwise provided by law.
180.0844 History
History: 1989 a. 303.
180.0850(1)
(1) "Corporation" means a domestic corporation and any domestic or foreign predecessor of a domestic corporation where the predecessor corporation's existence ceased upon the consummation of a merger or other transaction.
180.0850(2)
(2) "Director or officer" of a corporation means any of the following:
180.0850(2)(a)
(a) An individual who is or was a director or officer of the corporation.
180.0850(2)(b)
(b) An individual who, while a director or officer of the corporation, is or was serving at the corporation's request as a director, officer, partner, trustee, member of any governing or decision-making committee, manager, employee or agent of another corporation or foreign corporation, limited liability company, partnership, joint venture, trust or other enterprise.
180.0850(2)(c)
(c) An individual who, while a director or officer of the corporation, is or was serving an employee benefit plan because his or her duties to the corporation also impose duties on, or otherwise involve services by, the person to the plan or to participants in or beneficiaries of the plan.
180.0850(2)(d)
(d) Unless the context requires otherwise, the estate or personal representative of a director or officer.
180.0850(3)
(3) "Expenses" include fees, costs, charges, disbursements, attorney fees and any other expenses incurred in connection with a proceeding.
180.0850(4)
(4) "Liability" includes the obligation to pay a judgment, settlement, forfeiture, or fine, including an excise tax assessed with respect to an employee benefit plan, plus costs, fees, and surcharges imposed under
ch. 814, and reasonable expenses.
180.0850(5)
(5) "Party" includes an individual who was or is, or who is threatened to be made, a named defendant or respondent in a proceeding.
180.0850(6)
(6) "Proceeding" means any threatened, pending or completed civil, criminal, administrative or investigative action, suit, arbitration or other proceeding, whether formal or informal, which involves foreign, federal, state or local law and which is brought by or in the right of the corporation or by any other person.
180.0851
180.0851
Mandatory indemnification. 180.0851(1)
(1) A corporation shall indemnify a director or officer, to the extent that he or she has been successful on the merits or otherwise in the defense of a proceeding, for all reasonable expenses incurred in the proceeding if the director or officer was a party because he or she is a director or officer of the corporation.
