16-4-301 - Enforcement of assessment.
16-4-301. Enforcement of assessment.
(1) Payment of a delinquent assessment may be enforced by a corporation in one or moreof the following ways:
(a) imposition of a late charge, penalty, or interest;
(b) suspension of one or more benefits of share ownership, including the right to vote, totransfer shares, or to delivery of water in the case of a water company;
(c) sale at public auction of the shares on which payment is delinquent; and
(d) any other enforcement method specified in the corporation's articles of incorporation.
(2) In an enforcement action, the corporation may recover the delinquent assessment, anylate charge, penalty, or interest, and all costs of collection, including attorney fees.
(3) (a) The board of directors shall follow enforcement procedures:
(i) as set forth in the articles of incorporation or bylaws; or
(ii) as determined by the board of directors in a manner consistent with the board ofdirectors' fiduciary duty to shareholders.
(b) If the board of directors determines to sell shares at public auction, the board shallfollow the procedures required by Sections 16-4-302 through 16-4-312.
Enacted by Chapter 367, 2007 General Session