16-6a-304. Ultra vires
(1) Except as provided in Subsection (2), the validity of corporate action may not be challenged on the ground that the nonprofit corporation lacks or lacked power to act.
(2) A nonprofit corporation's power to act may be challenged:
(a) in a proceeding against the nonprofit corporation to enjoin the act brought by:
(i) a director; or
(ii) one or more voting members in a derivative proceeding;
(b) in a proceeding by or in the right of the nonprofit corporation, whether directly, derivatively, or through a receiver, trustee, or other legal representative, against an incumbent or former director, officer, employee, or agent of the nonprofit corporation; or
(c) in a proceeding by the attorney general under Section 16-6a-1414.
(3) In a proceeding under Subsection (2)(a) to enjoin an unauthorized corporate act, the court may:
(a) enjoin or set aside the act, if:
(i) it would be equitable to do so; and
(ii) all affected persons are parties to the proceeding; and
(b) award damages for loss, including anticipated profits, suffered by the nonprofit corporation or another party because of an injunction issued under this section.
Enacted by Chapter 300, 2000 General Session
Questions and Answers
Have questions about a statute? Ask it and an experienced Utah HOA attorney will answer it, plus see all the previous questions and answers.
Only members may post and view questions and answers. Join us by subscribing today!
Key Concepts explained
The index is the main hub of the site, where key concepts are explained
The 6 resolutions & 5 forms every HOA should have
Procedures required by law, updated as the laws change yearly, so your HOA is always in compliance. Plus other policy resolutions
*Prudent-Legal plan only
• Guides to walk board through owner requests for: records, assistance animal (disability), satellite dish, solar device. Avoid violating federal and Utah law!
• Guides to walk a homeowner through making request for records and to keep an assistance animal for a person with a disability.
2 Hours Attorney Time
Counsel from a Utah HOA specialist attorney
*Prudent-Legal plan only
Q & A
Have questions about a statute? Ask it and an experienced HOA attorney will answer it. Plus, see all the other Q & A.
Stay informed! Get updates of new HOA laws with explanations of how they affect your community and what to do to comply and minimize risk.
Tools to help you understand the law
Key words defined in hovercards, powerful search, comments, footnotes, tags, explanations and case law summaries