17-7104. Defective organization of corporation not a defense; judicial inquiry into regularity or validity of corporate organization.
17-7104
17-7104. Defective organization of corporation not a
defense; judicial inquiry into regularity or validity of corporate
organization.
(a) No domestic or foreign corporation shall be permitted to set up or rely
upon the want of legal organization as a defense to any action against it; nor
shall any person transacting business with such corporation, or sued for injury
done to its property, be permitted to rely upon such want of legal organization
as a defense.
(b) This section shall not be construed to prevent judicial inquiry into the
regularity or validity of the organization of a corporation, or its lawful
possession of any corporate power it may assert in any other suit or proceeding
where its corporate existence or the power to exercise the corporate rights it
asserts is challenged, and evidence tending to sustain the challenge shall be
admissible in any such suit or proceeding.
History: L. 1972, ch. 52, § 123;
L. 2004, ch. 143, § 76; Jan. 1, 2005.