<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 47-33-4 - Factors considered by board in discharging duties. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2069596Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2069596SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069596CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2069596Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2069596DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2069596Normal-000001 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2069596DefaultParagraphFont-000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2069596Normal-000003 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2069596000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2069596SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069596SCL-000005 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2069596Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-33-4"><span class="s2069596SENU">47-33-4</span></a><span xml:space="preserve" class="s2069596SENU">. </span><span class="s2069596CL">Factors considered by board in discharging duties.</span></p><p dir="ltr" class="s2069596Normal-000000"><span class="s2069596DefaultParagraphFont">(1) In discharging the duties of their respective positions in taking action which may involve or relate to a change or potential change in the control of a domestic public corporation, and in determining what they reasonably believe to be in the best interest of the corporation, the board and individual directors may, in addition to considering the effects of any such action on the shareholders, consider any of the following:</span></p><p dir="ltr" class="s2069596Normal-000001"><span class="s2069596DefaultParagraphFont">(a)    The long</span><span class="s2069596DefaultParagraphFont-000002">-</span><span class="s2069596DefaultParagraphFont">term as well as the short</span><span class="s2069596DefaultParagraphFont-000002">-</span><span class="s2069596DefaultParagraphFont">term interests of the corporation and its shareholders, including the possibility that these interests may be best served by the continued independence of the corporation;</span></p><p dir="ltr" class="s2069596Normal-000001"><span class="s2069596DefaultParagraphFont">(b)    The effects of the action on the corporation's employees, customers, creditors and suppliers of goods and services;</span></p><p dir="ltr" class="s2069596Normal-000001"><span class="s2069596DefaultParagraphFont">(c)    The effects of the action upon any community in which an office or other facility of the corporation is located; and</span></p><p dir="ltr" class="s2069596Normal-000001"><span class="s2069596DefaultParagraphFont">(d)    The economy of this state and the nation. The consideration of those factors shall not constitute a violation of the director's fiduciary duty to the corporation or its shareholders, including, without limiting the generality of the foregoing, a director's duty of loyalty.</span></p><p dir="ltr" class="s2069596Normal-000003"><span xml:space="preserve" class="s2069596DefaultParagraphFont">(2) If on the basis of the factors described in subdivision (1), the board determines that a change or potential change in the control of the domestic public corporation is not in the best interest of the corporation, it may reject a proposal or offer made to effect the change or potential change in the control of the corporation. If the board determines to reject any such proposal or offer, the board shall have no obligation to facilitate, remove any barriers to, or refrain from impeding the proposal or offer. Without limiting the generality of the foregoing, in the event the board determines that a change or potential change in the control of the domestic public corporation is not in the best interest of the corporation, the board shall have no obligation to redeem or to render inapplicable any rights or options described in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-33-5"><span class="s2069596DefaultParagraphFont">47-33-5</span></a><span class="s2069596DefaultParagraphFont">.</span></p><p dir="ltr" class="s2069596Normal"><span xml:space="preserve" class="s2069596000004"> </span></p><p dir="ltr" class="s2069596Normal"><span class="s2069596SCL">Source:</span><span xml:space="preserve" class="s2069596SCL-000005"> SL 1990, ch 369, § 104.</span></p></div></body></html>