State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-05 > 31a-5-411

31A-5-411. Continuity of management in emergencies.
(1) If an emergency is caused by an attack on the United States or by a nuclear or otherdisaster which makes it impracticable for a corporation to conduct its business in strict accordwith applicable provisions of law, its articles, bylaws, or its charter, this section facilitates thecontinued operation of a domestic insurance corporation.
(2) The board of any corporation may adopt emergency bylaws, subject to repeal orchange by action of those having power to adopt regular bylaws. These bylaws shall operateduring a national emergency. Notwithstanding any different provisions in the regular bylaws, theapplicable statutes, or the corporation's articles or charter, these emergency bylaws may make anyprovision that is reasonably necessary for operation during the emergency.
(3) If the board of a corporation has not adopted emergency bylaws, the followingprovisions are effective in a national emergency:
(a) Three directors constitute a quorum for the transaction of business at all meetings ofthe board.
(b) A vacancy on the board may be filled by a majority of the remaining directors, thoughless than a quorum, or by a sole remaining director.
(c) (i) If there are no surviving directors, but at least three officers of the corporationsurvive, the three officers with the longest term of service become the directors and possess all ofthe powers of the previous board and the powers that are granted under this section. Theemergency board may elect other directors by a majority vote.
(ii) If there are not three surviving officers, the commissioner shall appoint three naturalpersons, including any surviving officers, as directors. They shall possess all of the powers of theprevious board and any powers granted under this section. The emergency board may elect otherdirectors by majority vote.
(4) The board of a corporation may, by resolution adopted by the board, provide that inthe event of a national emergency and in the event of the death or incapacity of specified officersof the corporation, those officers shall be succeeded by the persons described in a succession list. The list may name persons or position titles. It shall establish the order of priority, successors inoffice, and it may prescribe the conditions for exercise of the powers of the office.
(5) The board of a corporation may, by resolution, provide that in a national emergencythe home office or principal place of business is a location named in the resolution. Theresolution may provide for alternate locations and establish an order of preference.

Enacted by Chapter 242, 1985 General Session