490.304 - ULTRA VIRES. - Iowa Statutes

490.304 ULTRA VIRES. 1. Except as provided in subsection 2, the validity of corporate action is not challengeable on the ground that the corporation lacks or lacked power to act. 2. A corporation's power to act may be challenged in any of the following proceedings: a. By a shareholder against the corporation to enjoin the act. b. By the corporation, directly, derivatively, or through a receiver, trustee, or other legal representative, against an incumbent or former director, officer, employee, or agent of the corporation. c. By the attorney general under section 490.1430. 3. In a shareholder's proceeding under subsection 2, paragraph "a", to enjoin an unauthorized corporate act, the court may enjoin or set aside the act, if equitable and if all affected persons are parties to the proceeding, and may award damages for loss, other than anticipated profits, suffered by the corporation or another party because of enjoining the unauthorized act.          Section History: Recent Form 89 Acts, ch 288, §28