GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION

CHAPTER 172
SENATE BILL 686

AN ACT TO MAKE TECHNICAL CHANGES TO CLARIFY THE CONFLICT OF INTEREST LAW RELATING TO BOARDS OF DIRECTORS OF HOSPITAL, MEDICAL, AND DENTAL SERVICE CORPORATIONS.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 58-65-173(b) reads as rewritten:
"(b)	The authorization, adoption, approval, or favorable recommendation by the board of directors of a corporation of any provision in any articles of incorporation, bylaw, contract or resolution, as permitted in this section, shall not be deemed an act or corporate transaction in which a director has a conflict of interest, and no such articles of incorporation or bylaw provision or contract or resolution shall be void or voidable on such grounds.  The authorization, adoption, approval, or favorable recommendation by the board of directors of a corporation of any provision in any articles of incorporation, bylaw, contract or resolution, as permitted in this section, which occurred on or prior to the effective date of this act, shall not be deemed an act or corporate transaction in which a director has a conflict of interest, and no such articles of incorporation, bylaw provision, contract or resolution shall be void or voidable on such grounds.  "
Sec. 2.  This act is effective upon ratification.
In the General Assembly read three times and ratified this the 30th day of May, 1991.

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James C. Gardner
President of the Senate

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Daniel Blue, Jr.
Speaker of the House of Representatives