§ 55-2-07. Emergency bylaws. - North Carolina Statutes

§55‑2‑07.  Emergency bylaws.

(a)        Unless the articlesof incorporation provide otherwise, the board of directors of a corporation mayadopt bylaws to be effective only in an emergency defined in subsection (d). The emergency bylaws, which are subject to amendment or repeal by theshareholders, may make all provisions necessary for managing the corporationduring the emergency, including:

(1)        Procedures forcalling a meeting of the board of directors;

(2)        Quorum requirementsfor the meeting; and

(3)        Designation ofadditional or substitute directors.

(b)        All provisions ofthe regular bylaws consistent with the emergency bylaws remain effective duringthe emergency.  The emergency bylaws are not effective after the emergencyends.

(c)        Corporate actiontaken in good faith in accordance with the emergency bylaws binds thecorporation and the fact that the action was taken by special procedures maynot be used to impose liability on a corporate director, officer, employee, oragent.

(d)        An emergency existsfor purposes of this section if a quorum of the corporation's directors cannotreadily be assembled because of some catastrophic event. (1989,c. 265, s. 1.)