{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/13.1-726.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/13.1-726.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/13.1-726.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/13.1-726.1.html"}],"law_id":74327,"edition_id":1,"section_id":74327,"structure_id":14434,"section_number":"13.1-726.1","catch_line":"Determination by disinterested directors","history":"1988, c. 442.","full_text":"A majority of the disinterested directors shall have the power to determine for the purposes of this article:\n\n1\n\nWhether a person is an interested shareholder;2\n\nThe number of voting shares beneficially owned by any person;3\n\nWhether a person is an affiliate or associate of another;4\n\nWhether the securities to be issued or transferred by the corporation or any of its subsidiaries to any interested shareholder have an aggregate fair market value equal to or greater than five percent of the aggregate fair market value of all of the outstanding voting shares of the corporation or any of its subsidiaries as of the determination date; and5\n\nWhether the assets or amount of indebtedness guaranteed that may be the subject of any affiliated transaction constitutes more than five percent of the consolidated net worth of the corporation.","order_by":null,"text":{"0":{"id":267216,"text":"A majority of the disinterested directors shall have the power to determine for the purposes of this article:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":267217,"text":"Whether a person is an interested shareholder;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":267218,"text":"The number of voting shares beneficially owned by any person;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":267219,"text":"Whether a person is an affiliate or associate of another;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":267220,"text":"Whether the securities to be issued or transferred by the corporation or any of its subsidiaries to any interested shareholder have an aggregate fair market value equal to or greater than five percent of the aggregate fair market value of all of the outstanding voting shares of the corporation or any of its subsidiaries as of the determination date; and","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":267221,"text":"Whether the assets or amount of indebtedness guaranteed that may be the subject of any affiliated transaction constitutes more than five percent of the consolidated net worth of the corporation.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4"}},"ancestry":[{"id":14434,"edition_id":1,"name":"Affiliated Transactions","identifier":"14","label":"article","depth":3,"order_by":1,"parent_id":12983,"metadata":{},"date_created":"2026-06-26 03:48:08","date_modified":"2026-06-26 03:48:08","permalink":{"id":150477,"object_type":"structure","relational_id":14434,"identifier":"14","token":"13.1\/9\/14","url":"\/13.1\/9\/14\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12983,"edition_id":1,"name":"Virginia Stock Corporation Act","identifier":"9","label":"chapter","depth":2,"order_by":1,"parent_id":12744,"metadata":{},"date_created":"2026-06-26 03:44:06","date_modified":"2026-06-26 03:44:06","permalink":{"id":150163,"object_type":"structure","relational_id":12983,"identifier":"9","token":"13.1\/9","url":"\/13.1\/9\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12744,"edition_id":1,"name":"Corporations","identifier":"13.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":147493,"object_type":"structure","relational_id":12744,"identifier":"13.1","token":"13.1","url":"\/13.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":60304,"structure_id":14434,"section_number":"13.1-725","catch_line":"Definitions","url":"\/13.1-725\/","token":"13.1\/9\/14\/13.1-725","metadata":false},{"id":71945,"structure_id":14434,"section_number":"13.1-725.1","catch_line":"Affiliated transactions","url":"\/13.1-725.1\/","token":"13.1\/9\/14\/13.1-725.1","metadata":false},{"id":58410,"structure_id":14434,"section_number":"13.1-726","catch_line":"Voting requirements for affiliated transactions","url":"\/13.1-726\/","token":"13.1\/9\/14\/13.1-726","metadata":false},{"id":74327,"structure_id":14434,"section_number":"13.1-726.1","catch_line":"Determination by disinterested directors","url":"\/13.1-726.1\/","token":"13.1\/9\/14\/13.1-726.1","metadata":false},{"id":75018,"structure_id":14434,"section_number":"13.1-727","catch_line":"Exceptions","url":"\/13.1-727\/","token":"13.1\/9\/14\/13.1-727","metadata":false},{"id":68737,"structure_id":14434,"section_number":"13.1-727.1","catch_line":"Nonexclusivity","url":"\/13.1-727.1\/","token":"13.1\/9\/14\/13.1-727.1","metadata":false},{"id":55797,"structure_id":14434,"section_number":"13.1-728","catch_line":"Repealed","url":"\/13.1-728\/","token":"13.1\/9\/14\/13.1-728","metadata":false}],"previous_section":{"id":58410,"structure_id":14434,"section_number":"13.1-726","catch_line":"Voting requirements for affiliated transactions","url":"\/13.1-726\/","token":"13.1\/9\/14\/13.1-726","metadata":false},"next_section":{"id":75018,"structure_id":14434,"section_number":"13.1-727","catch_line":"Exceptions","url":"\/13.1-727\/","token":"13.1\/9\/14\/13.1-727","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/13.1-726.1\/","history_text":"

This law was first created in 1988. The record of its establishment is cataloged in chapter 442 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1988 \u201cActs\u201d aren\u2019t available online.<\/p>","references":false,"refers_to":false,"permalink":{"id":150491,"object_type":"law","relational_id":74327,"identifier":"13.1-726.1","token":"13.1\/9\/14\/13.1-726.1","url":"\/13.1-726.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/13.1-726.1\/","token":"13.1\/9\/14\/13.1-726.1","dublin_core":{"Title":"Determination by disinterested directors","Type":"Text","Format":"text\/html","Identifier":"\u00a7 13.1-726.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A majority of the disinterested directors<\/span> shall have the power to determine for the purposes of this article:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Whether a person<\/span> is an interested shareholder<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The number of voting shares<\/span> beneficially owned by any person<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Whether a person<\/span> is an affiliate<\/span> or associate<\/span> of another; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Whether the securities to be issued or transferred by the corporation<\/span> or any of its subsidiaries to any interested shareholder<\/span> have an aggregate fair market value equal to or greater than five percent of the aggregate fair market value of all of the outstanding voting shares<\/span> of the corporation<\/span> or any of its subsidiaries as of the determination date<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Whether the assets<\/span> or amount of indebtedness guaranteed that may be the subject of any affiliated transaction<\/span> constitutes more than five percent of the consolidated net worth of the corporation<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDETERMINATION BY DISINTERESTED DIRECTORS (\u00a7 13.1-726.1)\n\nA majority of the disinterested directors shall have the power to determine for\nthe purposes of this article:\n\n1. Whether a person is an interested shareholder;\n\n2. The number of voting shares beneficially owned by any person;\n\n3. Whether a person is an affiliate or associate of another;\n\n4. Whether the securities to be issued or transferred by the corporation or any\nof its subsidiaries to any interested shareholder have an aggregate fair market\nvalue equal to or greater than five percent of the aggregate fair market value\nof all of the outstanding voting shares of the corporation or any of its\nsubsidiaries as of the determination date; and\n\n5. Whether the assets or amount of indebtedness guaranteed that may be the\nsubject of any affiliated transaction constitutes more than five percent of the\nconsolidated net worth of the corporation.\n\nHISTORY: 1988, c. 442.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}