RCW 24.06.005
Definitions.
As used in this chapter, unless the context otherwise requires, the term:
(1) "An officer of the corporation" means, in connection with the execution of documents submitted for filing with the secretary of state, the president, a vice president, the secretary, or the treasurer of the corporation.
(2) "Articles of incorporation" includes the original articles of incorporation and all amendments thereto, and includes articles of merger.
(3) "Board of directors" means the group of persons vested with the management of the affairs of the corporation irrespective of the name by which such group is designated.
(4) "Bylaws" means the code or codes of rules adopted for the regulation or management of the affairs of the corporation irrespective of the name or names by which such rules are designated.
(5) "Conforms to law" as used in connection with duties of the secretary of state in reviewing documents for filing under this chapter, means the secretary of state has determined the document complies as to form with the applicable requirements of this chapter.
(6) "Consumer cooperative" means a corporation engaged in the retail sale, to its members and other consumers, of goods or services of a type that are generally for personal, living, or family use.
(7) "Corporation" or "domestic corporation" means a mutual corporation or miscellaneous corporation subject to the provisions of this chapter, except a foreign corporation.
(8) "Duplicate originals" means two copies, original or otherwise, each with original signatures, or one original with original signatures and one copy thereof.
(9) "Effective date" means, in connection with a document filing made by the secretary of state, the date on which the filing becomes effective under RCW 23.95.210
.
(10) "Electronic transmission" or "electronically transmitted" means any process of electronic communication not directly involving the physical transfer of paper that is suitable for the retention, retrieval, and reproduction of the transmitted information by the recipient. However, such an electronic transmission must either set forth or be submitted with information, including any security or validation controls used, from which it can reasonably be determined that the electronic transmission was authorized by, as applicable, the corporation or shareholder or member by or on behalf of which the electronic transmission was sent.
(11) "Executed by an officer of the corporation," or words of similar import, means that any document signed by such person shall be and is signed by that person under penalties of perjury and in an official and authorized capacity on behalf of the corporation or person making the document submission with the secretary of state.
(12) "Foreign corporation" means a mutual or miscellaneous corporation or other corporation organized under laws other than the laws of this state which would be subject to the provisions of this chapter if organized under the laws of this state.
(13) "Insolvent" means inability of a corporation to pay debts as they become due in the usual course of its affairs.
(14) "Member" means one having membership rights in a corporation in accordance with provisions of its articles of incorporation or bylaws.
(15) "Miscellaneous corporation" means any corporation which is organized for a purpose or in a manner not provided for by the Washington business corporation act or by the Washington nonprofit corporation act, and which is not required to be organized under other laws of this state.
(16) "Mutual corporation" means a corporation organized to accomplish one or more of its purposes on a mutual basis for members and other persons.
(17) "Registered office" means the address of the corporation's registered agent.
(18) "Stock" or "share" means the units into which the proprietary interests of a corporation are divided in a corporation organized with stock.
(19) "Stockholder" or "shareholder" means one who is a holder of record of one or more shares in a corporation organized with stock.
[
2015 c 176 s 4101
;
2001 c 271 s 1
;
2000 c 167 s 1
;
1982 c 35 s 118
;
1969 ex.s. c 120 s 1
.]
NOTES:
Reviser's note:
The definitions in this section have been alphabetized pursuant to RCW 1.08.015
(2)(k).
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.010
Application of chapter.
The provisions of this chapter relating to domestic corporations shall apply to:
(1) All corporations organized hereunder; and
(2) All corporations which were heretofore organized under any act repealed by the Washington nonprofit corporation act and which are not organized for a purpose or in a manner provided for by said act.
The provisions of this chapter relating to foreign corporations shall apply to all foreign corporations conducting affairs in this state for a purpose or purposes for which a corporation might be organized under this chapter.
[
1969 ex.s. c 120 s 2
.]
RCW 24.06.015
Purposes.
Corporations may be organized under this chapter for any lawful purpose including but not limited to mutual, social, cooperative, fraternal, beneficial, service, labor organization, and other purposes; but excluding purposes which by law are restricted to corporations organized under other statutes.
[
1969 ex.s. c 120 s 3
.]
NOTES:
Labor unions: Chapter
49.36
RCW.
RCW 24.06.020
Incorporators.
One or more individuals, partnerships, corporations or governmental bodies or agencies may incorporate a corporation by signing and delivering articles of incorporation in duplicate to the secretary of state.
[
1982 c 35 s 119
;
1969 ex.s. c 120 s 4
.]
NOTES:
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.025
Articles of incorporation.
The articles of incorporation shall set forth:
(1) The name of the corporation.
(2) The period of duration, which may be perpetual or for a stated number of years.
(3) The purpose or purposes for which the corporation is organized.
(4) The qualifications and the rights and responsibilities of the members and the manner of their election, appointment, or admission to membership and termination of membership; and, if there is more than one class of members or if the members of any one class are not equal, the relative rights and responsibilities of each class or each member.
(5) If the corporation is to have capital stock:
(a) The aggregate number of shares which the corporation shall have authority to issue; if such shares are to consist of one class only, the par value of each of such shares, or a statement that all of such shares are without par value; or, if such shares are to be divided into classes, the number of shares of each class, and a statement of the par value of the shares of each such class or that such shares are to be without par value;
(b) If the shares are to be divided into classes, the designation of each class and a statement of the preferences, limitations, and relative rights in respect of the shares of each class;
(c) If the corporation is to issue the shares of any preferred or special class in series, then the designation of each series and a statement of the variations in the relative rights and preferences as between series insofar as the same are to be fixed in the articles of incorporation, and a statement of any authority to be vested in the board of directors to establish series and fix and determine the variations in the relative rights and preferences as between series;
(d) Any provision limiting or denying to shareholders the preemptive right to acquire additional shares of the corporation.
(6) If the corporation is to distribute surplus funds to its members, stockholders, or other persons, provisions for determining the amount and time of the distribution.
(7) Provisions for distribution of assets on dissolution or final liquidation.
(8) Whether a dissenting shareholder or member shall be limited to a return of less than the fair value of his or her shares or membership.
(9) The address of its initial registered office, including street and number, and the name of its initial registered agent at such address.
(10) The number of directors constituting the initial board of directors, and the names and addresses of the persons who are to serve as the initial directors.
(11) The name and address of each incorporator.
(12) Any provision, not inconsistent with law, for the regulation of the internal affairs of the association, including:
(a) Overriding the release from liability provided in RCW 24.06.035
(2); and
(b) Any provision which under this title is required or permitted to be set forth in the bylaws.
It shall not be necessary to set forth in the articles of incorporation any of the corporate powers enumerated in this chapter.
Unless the articles of incorporation provide that a change in the number of directors shall be made only by amendment to the articles of incorporation, a change in the number of directors made by amendment to the bylaws shall be controlling. In all other cases, whenever a provision of the articles of incorporation is inconsistent with a bylaw, the provision of the articles of incorporation shall be controlling.
[
2011 c 336 s 660
;
2001 c 271 s 2
;
1987 c 212 s 708
;
1982 c 35 s 120
;
1969 ex.s. c 120 s 5
.]
NOTES:
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.030
General powers.
Each corporation shall have power:
(1) To have perpetual succession by its corporate name unless a limited period of duration is stated in its articles of incorporation.
(2) To sue and be sued, complain and defend, in its corporate name.
(3) To have a corporate seal which may be altered at pleasure, and to use the same by causing it, or a facsimile thereof, to be impressed or affixed or in any other manner reproduced.
(4) To purchase, take, receive, lease, take by gift, devise or bequest, or otherwise acquire, own, hold, be trustee of, improve, use and otherwise deal in and with real or personal property, or any interest therein, wherever situated.
(5) To sell, convey, mortgage, pledge, lease, exchange, transfer and otherwise dispose of all or any part of its property and assets.
(6) To lend money to its employees.
(7) To purchase, take, receive, subscribe for, or otherwise acquire, own, hold, vote, use, employ, sell, mortgage, lend, pledge, or otherwise dispose of, and otherwise use and deal in and with, shares or other interests in, or obligations of, other domestic or foreign corporations, whether for profit or not for profit, associations, partnerships or individuals, or direct or indirect obligations of the United States, or of any other government, state, territory, governmental district or municipality or of any instrumentality thereof.
(8) To make contracts and incur liabilities, borrow money at such rates of interest as the corporation may determine, issue its notes, bonds, and other obligations, and secure any of its obligations by mortgage or pledge of all or any of its property, franchises and income.
(9) To lend money for its corporate purposes, invest and reinvest its funds, and take and hold real and personal property as security for the payment of funds so loaned or invested.
(10) To conduct its affairs, carry on its operations, and have offices and exercise the powers granted by this chapter, in any state, territory, district, or possession of the United States, or in any foreign country.
(11) To elect or appoint officers and agents of the corporation, and define their duties and fix their compensation.
(12) To make and alter bylaws, not inconsistent with its articles of incorporation or with the laws of this state, for the administration and regulation of the affairs of the corporation.
(13) To establish and maintain reserve, equity, surplus or other funds, and to provide for the time, form and manner of distribution of such funds among members, shareholders or other persons with interests therein in accordance with the articles of incorporation.
(14) Unless otherwise provided in the articles of incorporation, to make donations for the public welfare or for charitable, scientific or educational purposes, and in time of war to make donations in aid of the United States and its war activities.
(15) To indemnify any director or officer or former director or officer of the corporation, or any person who may have served at its request as a director or officer of another corporation, against expenses actually and necessarily incurred by him or her in connection with the defense of any action, suit or proceeding in which he or she is made a party by reason of being or having been such director or officer, except for acts or omissions that involve intentional misconduct or a knowing violation of law by the director or officer, or that involve a transaction from which the director or officer will personally receive a benefit in money, property, or services to which the director or officer is not legally entitled: PROVIDED, That such indemnification shall not be deemed exclusive of any other rights to which such director or officer may be entitled, under any bylaw, agreement, vote of board of directors or members or shareholders, or otherwise.
(16) To cease its corporate activities and surrender its corporate franchise.
(17) To have and exercise all powers necessary or convenient to effect any or all of the purposes for which the corporation is organized and not inconsistent with the articles of incorporation or the provisions of this chapter.
[
2001 c 271 s 3
;
1969 ex.s. c 120 s 6
.]
NOTES:
Indemnification of agents, insurance: RCW 23B.08.320, 23B.08.500
through
23B.08.580, 23B.08.600, and
23B.17.030
.
RCW 24.06.032
Additional rights and powers authorized.
(1) In addition to any other rights and powers granted under this chapter, any mutual or miscellaneous corporation that was organized under this chapter prior to June 10, 2004, and conducts its business on a cooperative basis is entitled, by means of an express election contained in its articles of incorporation or bylaws, to avail itself of part or all of the additional rights and powers granted to cooperative associations under RCW 23.86.105
(1), 23.86.160, and
23.86.170, and, if the corporation is a consumer cooperative, under RCW 23.95.305
(6) and
23.86.030
(2).
(2) Any other provision of this chapter notwithstanding:
(a) A consumer cooperative organized under this chapter may give notice to its members of the place, day, and hour of its annual meeting not less than ten nor more than one hundred twenty days before the date of the annual meeting.
(b) A consumer cooperative organized under this chapter may satisfy any provisions of this chapter requiring that certain information or materials must be set forth in a writing accompanying or contained in the notice of a meeting of its members, by: (i) Posting the information or materials on an electronic network not less than thirty days prior to the meeting at which such information or materials will be considered by members; and (ii) delivering to those members who are eligible to vote a notification, either in a meeting notice authorized under this chapter or in such other reasonable form as the board of directors may specify, setting forth the address of the electronic network at which and the date after which such information or materials will be posted and available for viewing by members eligible to vote, together with comprehensible instructions regarding how to obtain access to the information and materials posted on the electronic network. A consumer cooperative that elects to post information or materials required by this chapter on an electronic network shall, at its expense, provide a copy of such information or materials in a written or other tangible medium to any member who is eligible to vote and so requests.
(c) The articles of incorporation or bylaws of a consumer cooperative organized under this chapter may provide that the annual meeting of its members need not involve a physical assembly at a particular geographic location if the meeting is held by means of electronic or other remote communications with its members, in a fashion that its board of directors determines will afford members a reasonable opportunity to read or hear the proceedings substantially concurrently with their occurrence, to vote by electronic transmission on matters submitted to a vote by members, and to pose questions of and make comments to management, subject to such procedural guidelines and limitations as its board of directors may adopt. Members participating in an annual meeting by means of electronic or other remote communications technology in accordance with any such procedural guidelines and limitations shall be deemed present at the meeting for all purposes under this chapter. For any annual meeting of members that is conducted by means of electronic or other remote communications without a physical assembly at a geographic location, the address of the electronic network or other communications site or connection specified in the notice of the meeting shall be deemed to be the place of the meeting.
[
2015 c 176 s 4102
;
2012 c 216 s 1
;
2004 c 265 s 40
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
RCW 24.06.035
Nonprofit status
—
Members', officers' immunity from liability.
(1) A corporation subject to the provisions of this chapter shall not engage in any business, trade, a vocation or profession for profit: PROVIDED, That nothing contained herein shall be construed to forbid such a corporation from accumulating reserve, equity, surplus or other funds through subscriptions, fees, dues or assessments, or from charges made its members or other persons for services rendered or supplies or benefits furnished, or from distributing its surplus funds to its members, stockholders or other persons in accordance with the provisions of the articles of incorporation. A member of the board of directors or an officer of such a corporation shall have the same immunity from liability as is granted in RCW 4.24.264
.
(2) Unless the articles of incorporation provide otherwise, a member of the board of directors or an officer of the corporation is not individually liable to the corporation or its shareholders or members in their capacity as shareholders or members for conduct within his or her official capacity as a director or officer after July 22, 2001, except for acts or omissions that involve intentional misconduct or a knowing violation of the law, or that involve a transaction from which the director or officer will personally receive a benefit in money, property, or services to which the director or officer is not legally entitled. Nothing in this subsection may be construed to limit or modify in any manner the power of the attorney general to bring an action on behalf of the public to enjoin, correct, or otherwise remedy a breach of a charitable trust by a corporation or its directors or officers.
[
2001 c 271 s 4
;
1987 c 212 s 709
;
1969 ex.s. c 120 s 7
.]
RCW 24.06.040
Defense of ultra vires.
No act of a corporation and no conveyance or transfer of real or personal property to or by a corporation shall be invalid by reason of the fact that the corporation was without capacity or power to do such act or to make or receive such conveyance or transfer, but such lack of capacity or power may be asserted:
(1) In a proceeding by a member, shareholder or a director against the corporation to enjoin the doing or continuation of unauthorized acts or the transfer of real or personal property by or to the corporation. If the unauthorized acts or transfer sought to be enjoined are being, or are to be, performed pursuant to any contract to which the corporation is a party, the court may, if all of the parties to the contract are parties to the proceeding and if it deems the same to be equitable, set aside and enjoin the performance of such contract, and in so doing may allow to the corporation or the other parties to the contract, as the case may be, compensation for the loss or damage sustained by either of them which may result from the action of the court in setting aside and enjoining the performance of such contract: PROVIDED, That anticipated profits to be derived from the performance of the contract shall not be awarded by the court as a loss or damage sustained.
(2) In a proceeding by the corporation, whether acting directly or through a receiver, trustee, or other legal representative, or through members or shareholder in a representative suit, against the officers or directors of the corporation for exceeding their authority.
(3) In a proceeding by the attorney general, as provided in this chapter, to dissolve the corporation, or in a proceeding by the attorney general to enjoin the corporation from performing unauthorized acts, or in any other proceeding by the attorney general.
[
1969 ex.s. c 120 s 8
.]
RCW 24.06.043
Indemnification of agents of any corporation authorized.
See RCW 23B.17.030
.
RCW 24.06.045
Corporate name.
The corporate name must comply with the requirements of Article 3 of chapter
23.95
RCW.
[
2015 c 176 s 4103
;
1998 c 102 s 4
;
1995 c 337 s 22
;
1994 c 211 s 1307
;
1987 c 55 s 41
;
1982 c 35 s 121
;
1973 c 113 s 1
;
1969 ex.s. c 120 s 9
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Effective date
—
1995 c 337:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 c 337 s 23
.]
Effective date
—
1994 c 211:
See note following RCW 18.04.025
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
Corporate name of foreign corporation: RCW 24.06.350
.
RCW 24.06.046
Reservation of exclusive right to use corporate name.
The exclusive right to the use of a corporate name may be reserved in accordance with RCW 23.95.310
.
[
2015 c 176 s 4104
;
1993 c 356 s 13
;
1982 c 35 s 122
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Effective date
—
1993 c 356:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993." [
1993 c 356 s 25
.]
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.047
Registration of corporate name.
Any corporation, organized and existing under the laws of any state or territory of the United States[,] may register its corporate name in accordance with RCW 23.95.315
.
[
2015 c 176 s 4105
;
1994 c 211 s 1308
;
1993 c 356 s 14
;
1987 c 55 s 42
;
1982 c 35 s 123
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Effective date
—
1994 c 211:
See note following RCW 18.04.025
.
Effective date
—
1993 c 356:
See note following RCW 24.06.046
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.048
Renewal of registration of corporate name.
A corporation[,] which has in effect a registration of its corporate name, may renew such registration in accordance with RCW 23.95.315
.
[
2015 c 176 s 4106
;
1982 c 35 s 124
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.050
Registered agent.
Each domestic corporation and foreign corporation authorized to do business in this state shall have and continuously maintain in this state a registered agent in accordance with Article 4 of chapter
23.95
RCW.
[
2015 c 176 s 4107
;
2009 c 202 s 2
;
1993 c 356 s 15
;
1982 c 35 s 125
;
1969 ex.s. c 120 s 10
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Effective date
—
1993 c 356:
See note following RCW 24.06.046
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.055
Change of registered agent.
A corporation may change its registered agent by delivering to the secretary of state for filing a statement of change in accordance with RCW 23.95.430
.
Any registered agent of a corporation may resign as agent by delivering to the secretary of state for filing a statement of resignation in accordance with RCW 23.95.445
.
[
2015 c 176 s 4108
;
2011 c 336 s 661
;
1993 c 356 s 16
;
1982 c 35 s 126
;
1969 ex.s. c 120 s 11
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Effective date
—
1993 c 356:
See note following RCW 24.06.046
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.060
Service of process on corporation.
Service of any process, notice or demand required or permitted by law to be served upon the corporation may be made in accordance with RCW 23.95.450
.
[
2015 c 176 s 4109
;
1982 c 35 s 127
;
1969 ex.s. c 120 s 12
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.065
Members.
A corporation may have one or more classes of members. The designation of such class or classes, the manner of election, appointment or admission to membership, and the qualifications, responsibilities and rights of the members of each class shall be set forth in the articles of incorporation. A corporation may issue certificates evidencing membership therein. Certificates may be assigned by a member and reacquired by the corporation under such provisions, rules and regulations as may be prescribed in the articles of incorporation. Membership may be terminated under such provisions, rules and regulations as may be prescribed in the articles of incorporation or bylaws.
[
1969 ex.s. c 120 s 13
.]
RCW 24.06.070
Shares
—
Issuance
—
Payment
—
Subscription agreements.
(1) Each corporation which is organized with capital stock shall have the power to create and issue the number of shares stated in its articles of incorporation. Such shares may be divided into one or more classes, any or all of which classes may consist of shares with par value or shares without par value, with such designations, preferences, limitations, and relative rights as shall be stated in the articles of incorporation. The articles of incorporation may limit or deny the voting rights of or provide special voting rights for the shares of any class to the extent not inconsistent with the provisions of this chapter.
(2) Without limiting the authority herein contained, a corporation, when so provided in its articles of incorporation, may issue shares of preferred or special classes:
(a) Subject to the right of the corporation to redeem any of such shares at the price fixed by the articles of incorporation for the redemption thereof.
(b) Entitling the holders thereof to cumulative, noncumulative, or partially cumulative dividends.
(c) Having preference over any other members or class or classes of shares as to the payment of dividends.
(d) Having preference in the assets of the corporation over any other members or class or classes of shares upon the voluntary or involuntary liquidation of the corporation.
(3) The consideration for the issuance of shares may be paid in whole or in part, in money, in other property, tangible or intangible, or in labor or services actually performed for the corporation. When payment of the consideration for which shares are to be issued shall have been received by the corporation, such shares shall be deemed to be fully paid and nonassessable.
Neither promissory notes nor future services shall constitute payment or part payment, for shares of a corporation.
In the absence of fraud in the transaction, the judgment of the board of directors or the shareholders, as the case may be, as to the value of the consideration received for shares shall be conclusive.
(4) A subscription for shares of a corporation to be organized shall be in writing and be irrevocable for a period of six months, unless otherwise provided by the terms of the subscription agreement or unless all of the subscribers consent to the revocation of such subscription.
Unless otherwise provided in the subscription agreement, subscriptions for shares, whether made before or after the organization of a corporation, shall be paid in full at such time, or in such installments and at such times, as shall be determined by the board of directors. Any call made by the board of directors for payment on subscriptions shall be uniform as to all shares of the same class or as to all shares of the same series, as the case may be. In case of default in the payment of any installment or call when such payment is due, the corporation may proceed to collect the amount due in the same manner as any debt due the corporation. The bylaws may prescribe other penalties for failure to pay installments or calls that may become due, but no penalty working a forfeiture of a subscription, or of the amounts paid thereon, shall be declared as against any subscriber unless the amount due thereon shall remain unpaid for a period of twenty days after written demand has been made therefor. If mailed, such written demand shall be deemed to be made when deposited in the United States mail in a sealed envelope addressed to the subscriber at his or her last post office address known to the corporation, with postage thereon prepaid. In the event of the sale of any shares by reason of any forfeiture, the excess of proceeds realized over the amount due and unpaid on such shares shall be paid to the delinquent subscriber or to his or her legal representative.
[
2011 c 336 s 662
;
1969 ex.s. c 120 s 14
.]
RCW 24.06.075
Shares
—
Consideration, fixing.
(1) Shares having a par value may be issued for such consideration expressed in dollars, not less than the par value thereof, as shall be fixed from time to time by the board of directors.
(2) Shares without par value shall be issued for such consideration expressed in dollars as may be fixed from time to time by the board of directors.
[
1969 ex.s. c 120 s 15
.]
RCW 24.06.080
Shares
—
Certificates.
The shares of a corporation shall be represented by certificates signed by the president or vice president and the secretary or an assistant secretary of the corporation, and may be sealed with the seal of the corporation or a facsimile thereof. The signatures of the president or vice president and the secretary or assistant secretary upon a certificate may be facsimiles if the certificate is countersigned by a transfer agent, or registered by a registrar, other than the corporation itself or an employee of the corporation. In case any officer who has signed or whose facsimile signature has been placed upon such certificate shall have ceased to be such officer before such certificate is issued, it may be issued by the corporation with the same effect as if he or she were such officer at the date of its issue.
Every certificate representing shares issued by a corporation which is authorized to issue shares of more than one class shall set forth upon the face or back of the certificate, or shall state that the corporation will furnish to any shareholder upon request and without charge, a full statement of the designations, preferences, limitations, and relative rights of the shares of each class authorized to be issued and, if the corporation is authorized to issue any preferred or special class in series, the variations in the relative rights and preferences between the shares of each such series so far as the same have been fixed and determined and the authority of the board of directors to fix and determine the relative rights and preferences of subsequent series.
Each certificate representing shares shall state upon the face thereof:
(1) That the corporation is organized under the laws of this state.
(2) The name of the person to whom issued.
(3) The number and class of shares, and the designation of the series, if any, which such certificate represents.
(4) The par value of each share represented by such certificate, or a statement that the shares are without par value.
No certificate shall be issued for any share until such share is fully paid.
[
2011 c 336 s 663
;
1969 ex.s. c 120 s 16
.]
RCW 24.06.085
Liability of shareholders, subscribers, assignees, executors, trustees, etc.
A holder of or subscriber to shares of a corporation shall be under no obligation to the corporation or its creditors with respect to such shares other than the obligation to pay to the corporation the full consideration for which such shares were issued or to be issued.
Any person becoming an assignee or transferee of shares or of a subscription for shares in good faith and without knowledge or notice that the full consideration therefor has not been paid shall not be personally liable to the corporation or its creditors for any unpaid portion of such consideration.
An executor, administrator, conservator, guardian, trustee, assignee for the benefit of creditors, or receiver shall not be personally liable to the corporation as a holder of or subscriber to shares of a corporation but the estate and funds in his or her hands shall be so liable.
No pledgee or other holder of shares as collateral security shall be personally liable as a shareholder.
[
2011 c 336 s 664
;
1969 ex.s. c 120 s 17
.]
RCW 24.06.090
Preemptive share acquisition rights.
The preemptive right of a shareholder to acquire unissued shares of a corporation may be limited or denied to the extent provided in the articles of incorporation.
[
1969 ex.s. c 120 s 18
.]
RCW 24.06.095
Bylaws.
The initial bylaws of a corporation shall be adopted by its board of directors. The power to alter, amend or repeal the bylaws or adopt new bylaws shall be vested in the board of directors unless otherwise provided in the articles of incorporation or the bylaws. The bylaws may contain any provisions for the regulation and management of the affairs of a corporation not inconsistent with law or the articles of incorporation: PROVIDED, That where the bylaws of an existing corporation prohibit voting by mail, by electronic transmission, or by proxy or attorney-in-fact, and the quorum required by its bylaws for election of directors or transaction of other business has not been obtained at a shareholders' or members' meeting, for a period which includes at least two consecutive annual meeting dates, the board of directors shall have power to amend such bylaws to thereafter authorize voting by mail, by electronic transmission, or by proxy or attorney-in-fact.
[
2000 c 167 s 2
;
1970 ex.s. c 78 s 1
;
1969 ex.s. c 120 s 19
.]
RCW 24.06.100
Meetings of members and shareholders.
Meetings of members and/or shareholders may be held at such place, either within or without this state, as may be provided in the bylaws. In the absence of any such provision, all meetings shall be held at the registered office of the corporation in this state.
An annual meeting of the members and shareholders shall be held at such time as may be provided in the bylaws. Failure to hold the annual meeting at the designated time shall not work a forfeiture or dissolution of the corporation.
Special meetings of the members or shareholders may be called by the president or by the board of directors. Special meetings of the members or shareholders may also be called by such other officers or persons or number or proportion of members or shareholders as may be provided in the articles of incorporation or the bylaws. In the absence of a provision fixing the number or proportion of members or shareholders entitled to call a meeting, a special meeting of members or shareholders may be called by persons having one-twentieth of the votes entitled to be cast at such meeting. Only business within the purpose or purposes described in the meeting notice required by RCW 24.06.105
may be conducted at a special meeting.
If the articles of incorporation or bylaws so provide, members or shareholders may participate in any meeting of members or shareholders by any means of communication by which all persons participating in the meeting can hear each other during the meeting. A member or shareholder participating in a meeting by this means is deemed to be present in person at the meeting.
[
2001 c 271 s 5
;
1969 ex.s. c 120 s 20
.]
RCW 24.06.105
Notice of meetings.
Written or printed notice or, if specifically permitted by the articles of incorporation or bylaws of the corporation, notice given by electronic transmission, stating the place, day and hour of the meeting and, in case of a special meeting, the purpose or purposes for which the meeting is called, shall be delivered not less than ten nor more than fifty days before the date of the meeting, either personally or by mail or electronic transmission, by or at the direction of the president, or the secretary, or the officers or persons calling the meeting, to each member or shareholder entitled to vote at such meeting. If provided in the articles of incorporation, notice of regular meetings other than annual may be made by providing each member with the adopted schedule of regular meetings for the ensuing year at any time after the annual meeting and ten days prior to a regular meeting and at any time when requested by a member or by such other notice as may be prescribed by the bylaws. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail, addressed to the member or shareholder at his or her address as it appears on the records of the corporation, with postage thereon prepaid. If sent by electronic transmission, the notice is deemed to be delivered when sent, addressed to the member or shareholder at his or her electronic transmission address as it appears on the records of the corporation.
[
2000 c 167 s 3
;
1969 ex.s. c 120 s 21
.]
RCW 24.06.110
Voting.
The right of a class or classes of members or shareholders to vote may be limited, enlarged or denied to the extent specified in the articles of incorporation. Unless so limited, enlarged or denied, each member and each outstanding share of each class shall be entitled to one vote on each matter submitted to a vote of members or shareholders. No member of a class may acquire any interest which will entitle him or her to a greater vote than any other member of the same class.
A member or shareholder may vote in person or, unless the articles of incorporation or the bylaws otherwise provide, may vote by mail, by electronic transmission, or by proxy executed in writing by the member or shareholder or by his or her duly authorized attorney-in-fact: PROVIDED, That no proxy shall be valid for more than eleven months from the date of its execution unless otherwise specified in the proxy.
If a member or shareholder may vote by proxy, the proxy may be given by:
(1) Executing a writing authorizing another person or persons to act for the member or shareholder as proxy. Execution may be accomplished by the member or shareholder or the member's or shareholder's authorized officer, director, employee, or agent signing the writing or causing his or her signature to be affixed to the writing by any reasonable means including, but not limited to, facsimile signature; or
(2) Authorizing another person or persons to act for the member or shareholder as proxy by transmitting or authorizing the transmission of an electronic transmission to the person who will be the holder of the proxy, or to a proxy solicitation firm, proxy support service organization, or like agent duly authorized by the person who will be the holder of the proxy to receive the transmission. If it is determined that the electronic transmissions are valid, the inspector of election or, if there are no inspectors, any other officer or agent of the corporation making that determination on behalf of the corporation shall specify the information upon which they relied. The corporation shall require the holders of proxies received by electronic transmission to provide to the corporation copies of the electronic transmission and the corporation shall retain copies of the electronic transmission for a reasonable period of time.
If specifically permitted by the articles of incorporation or bylaws, whenever proposals or directors or officers are to be voted upon, such vote may be taken by mail or by electronic transmission if the name of each candidate and the text of each proposal to be so voted upon are set forth in a writing accompanying or contained in the notice of meeting. Persons voting by mail or by electronic transmission shall be deemed present for all purposes of quorum, count of votes and percentages of total voting power voting.
The articles of incorporation or the bylaws may provide that in all elections for directors every person entitled to vote shall have the right to cumulate his or her vote and to give one candidate a number of votes equal to his or her vote multiplied by the number of directors to be elected, or by distributing such votes on the same principle among any number of such candidates.
[
2001 c 271 s 6
;
2000 c 167 s 4
;
1969 ex.s. c 120 s 22
.]
RCW 24.06.115
Quorum.
The articles of incorporation or the bylaws may provide the number or percentage of votes which members or shareholders are entitled to cast in person, by mail, by electronic transmission, or by proxy, which shall constitute a quorum at meetings of shareholders or members. However, in no event shall a quorum be less than one-fourth, or in the case of consumer cooperatives, five percent, of the votes which members or shareholders are entitled to cast in person, by mail, by electronic transmission, or by proxy, at a meeting considering the adoption of a proposal which is required by the provisions of this chapter to be adopted by at least two-thirds of the votes which members or shareholders present at the meeting in person or by mail, by electronic transmission, or represented by proxy are entitled to cast. In all other matters and in the absence of any provision in the articles of incorporation or bylaws, a quorum shall consist of one-fourth, or in the case of consumer cooperatives, five percent, of the votes which members or shareholders are entitled to cast in person, by mail, by electronic transmission, or by proxy at the meeting. On any proposal on which a class of shareholders or members is entitled to vote as a class, a quorum of the class entitled to vote as such class must also be present in person, by mail, by electronic transmission, or represented by proxy.
[
2001 c 271 s 7
;
2000 c 167 s 5
;
1969 ex.s. c 120 s 23
.]
RCW 24.06.120
Class voting.
A class of members or shareholders shall be entitled to vote as a class upon any proposition, whether or not entitled to vote thereon by the provisions of the articles of incorporation, if the proposition would increase or decrease the rights, qualifications, limitations, responsibilities or preferences of the class as related to any other class.
[
1969 ex.s. c 120 s 24
.]
RCW 24.06.125
Board of directors.
The affairs of the corporation shall be managed by a board of directors. Directors need not be residents of this state or members or shareholders of the corporation unless the articles of incorporation or the bylaws so require. The articles of incorporation or the bylaws may prescribe other qualifications for directors.
[
1969 ex.s. c 120 s 25
.]
RCW 24.06.130
Number and election of directors.
The number of directors of a corporation shall be not less than three and shall be fixed by the bylaws: PROVIDED, That the number of the first board of directors shall be fixed by the articles of incorporation. The number of directors may be increased or decreased from time to time by amendment to the bylaws, unless the articles of incorporation provide that a change in the number of directors shall be made only by amendment of the articles of incorporation. No decrease in number shall have the effect of shortening the term of any incumbent director. In the absence of a bylaw fixing the number of directors, the number shall be the same as that stated in the articles of incorporation.
The directors constituting the first board of directors shall be named in the articles of incorporation and shall hold office until the first annual election of directors or for such other period as may be specified in the articles of incorporation or the bylaws. Thereafter, directors shall be elected or appointed in the manner and for the terms provided in the articles of incorporation or the bylaws. In the absence of a provision fixing the term of office, the term of office of a director shall be one year.
Directors may be divided into classes and the terms of office of the several classes need not be uniform. Each director shall hold office for the term for which he or she is elected or appointed and until his or her successor shall have been elected or appointed and qualified.
A director may be removed from office pursuant to any procedure therefor provided in the articles of incorporation.
[
2011 c 336 s 665
;
1969 ex.s. c 120 s 26
.]
RCW 24.06.140
Quorum of directors.
A majority of the number of directors fixed by the bylaws, or in the absence of a bylaw fixing the number of directors, then of the number stated in the articles of incorporation, shall constitute a quorum for the transaction of business, unless otherwise provided in the articles of incorporation or the bylaws: PROVIDED, That a quorum shall never consist of less than one-third of the number of directors so fixed or stated. The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the board of directors, unless the act of a greater number is required by this chapter, the articles of incorporation, or the bylaws.
[
1969 ex.s. c 120 s 28
.]
RCW 24.06.145
Committees.
If the articles of incorporation or the bylaws so provide, the board of directors, by resolution adopted by a majority of the directors in office, may designate and appoint one or more committees each of which shall consist of one or more directors, which committees, to the extent provided in such resolution, in the articles of incorporation, or in the bylaws of the corporation, shall have and exercise the authority of the board of directors in the management of the corporation: PROVIDED, That no such committee shall have the authority of the board of directors in reference to:
(1) Amending, altering, or repealing the bylaws;
(2) Electing, appointing, or removing any member of any such committee or any director or officer of the corporation;
(3) Amending the articles of incorporation;
(4) Adopting a plan of merger or a plan of consolidation with another corporation;
(5) Authorizing the sale, lease, exchange, or mortgage, of all or substantially all of the property and assets of the corporation;
(6) Authorizing the voluntary dissolution of the corporation or revoking proceedings therefor; or
(7) Amending, altering, or repealing any resolution of the board of directors which by its terms provides that it shall not be amended, altered, or repealed by such committee.
The designation and appointment of any such committee and the delegation thereto of authority shall not operate to relieve the board of directors, or any individual director of any responsibility imposed upon it or him or her by law.
[
2025 c 4 s 7
;
2011 c 336 s 667
;
1969 ex.s. c 120 s 29
.]
RCW 24.06.150
Directors' meetings.
Meetings of the board of directors, regular or special, may be held either within or without this state, and upon such notice as the bylaws may prescribe. Attendance of a director at any meeting shall constitute a waiver of notice of such meeting except where a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the board of directors need be specified in the notice or waiver of notice of such meeting.
Unless the articles of incorporation or bylaws provide otherwise, any or all directors may participate in a regular or special meeting by, or conduct the meeting through the use of, any means of communication by which all directors participating can hear each other during the meeting. A director participating in a meeting by this means is deemed to be present in person at the meeting.
[
2001 c 271 s 8
;
1969 ex.s. c 120 s 30
.]
RCW 24.06.153
Duties of director or officer
—
Standards
—
Liability.
(1) A director shall discharge the duties of a director, including duties as a member of a committee, and an officer with discretionary authority shall discharge the officer's duties under that authority:
(a) In good faith;
(b) With the care an ordinarily prudent person in a like position would exercise under similar circumstances; and
(c) In a manner the director or officer reasonably believes to be in the best interests of the corporation.
(2) In discharging the duties of a director or an officer, a director or officer is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:
(a) One or more officers or employees of the corporation whom the director or officer reasonably believes to be reliable and competent in the matters presented; or
(b) Legal counsel, public accountants, or other persons as to matters the director or officer reasonably believes are within the person's professional or expert competence.
In addition, a director is entitled to rely on a committee of the board of directors of which the director is not a member if the director reasonably believes the committee merits confidence.
(3) A director or an officer is not acting in good faith if the director or officer has knowledge concerning the matter in question that makes reliance otherwise permitted by subsection (2) of this section unwarranted.
(4) A director or officer is not liable for any action taken as a director or as an officer, or any failure to take any action, if the director or officer performed the duties of the director's or officer's office in compliance with this section.
[
2001 c 271 s 9
.]
RCW 24.06.155
Officers.
The officers of a corporation shall consist of a president, one or more vice presidents, a secretary, a treasurer and such other officers and assistant officers as may be deemed necessary, each of whom shall be elected or appointed at such time and in such manner and for such terms not exceeding three years as may be prescribed in the articles of incorporation or the bylaws. In the absence of any such provision, all officers shall be elected or appointed annually by the board of directors. If the bylaws so provide, any two or more offices may be held by the same person, except the offices of president and secretary.
The articles of incorporation or the bylaws may provide that any one or more officers of the corporation shall be ex officio members of the board of directors.
The officers of a corporation may be designated by such additional titles as may be provided in the articles of incorporation or the bylaws.
[
1969 ex.s. c 120 s 31
.]
RCW 24.06.160
Books and records.
Each corporation shall keep correct and complete books and records of account and shall keep minutes of the proceedings of its members, shareholders, board of directors, and committees having any of the authority of the board of directors; and shall keep at its registered office or principal office in this state a record of the names and addresses of its members and shareholders entitled to vote. All books and records of a corporation may be inspected by any member or shareholder, or his or her agent or attorney, for any proper purpose at any reasonable time.
[
2011 c 336 s 668
;
1969 ex.s. c 120 s 32
.]
RCW 24.06.165
Loans to directors or officers.
No loans exceeding or more favorable than those which are customarily made to members or shareholders shall be made by a corporation to its directors or officers. The directors of a corporation who vote for or assent to the making of a loan in violation of this section to a director or officer of the corporation, and any officer or officers participating in the making of such loan, shall be jointly and severally liable to the corporation for the amount of such loan until the repayment thereof.
[
1969 ex.s. c 120 s 33
.]
RCW 24.06.175
Effect of filing of articles of incorporation.
Upon the filing of the articles of incorporation, the corporate existence shall begin, and the certificate of incorporation shall, except as against the state in a proceeding to cancel or revoke the certificate of incorporation, be conclusive evidence that all conditions precedent required to be performed by the incorporators have been complied with and that the corporation has been incorporated under this chapter.
[
1982 c 35 s 129
;
1969 ex.s. c 120 s 35
.]
NOTES:
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.180
Organization meeting.
After the issuance of the certificate of incorporation an organization meeting of the board of directors named in the articles of incorporation shall be held, either within or without this state, at the call of a majority of the incorporators, for the purpose of adopting bylaws, electing officers and the transaction of such other business as may come before the meeting. The incorporators calling the meeting shall give at least three days' notice thereof by mail to each director so named, which notice shall state the time and place of the meeting.
A first meeting of the members and shareholders may be held at the call of the directors, or a majority of them, upon at least three days' notice, for such purposes as shall be stated in the notice of the meeting.
[
1969 ex.s. c 120 s 36
.]
RCW 24.06.185
Right to amend articles of incorporation.
A corporation may amend its articles of incorporation from time to time in any and as many respects as may be desired, so long as its articles of incorporation as amended contain only such provisions as are lawful under this chapter. A member or shareholder of a corporation does not have a vested property right resulting from any provision in the articles of incorporation.
[
2001 c 271 s 10
;
1969 ex.s. c 120 s 37
.]
RCW 24.06.190
Procedure to amend articles of incorporation.
Amendments to the articles of incorporation shall be made in the following manner:
A corporation's board of directors may amend the articles of incorporation to change the name of the corporation, without seeking member or shareholder approval. With respect to amendments other than to change the name of the corporation, the board of directors shall adopt a resolution setting forth the proposed amendment and directing that it be submitted to a vote at a meeting of members and shareholders, which may be either an annual or a special meeting. Written or printed notice or, if specifically permitted by the articles of incorporation or bylaws of the corporation, notice by electronic transmission, setting forth the proposed amendment or a summary of the changes to be effected thereby shall be given to each member and shareholder entitled to vote at such meeting within the time and in the manner provided in this chapter for the giving of notice of meetings of members and shareholders. The proposed amendment shall be adopted upon receiving at least two-thirds of the votes which members or shareholders present in person or by mail or by electronic transmission at such meeting or represented by proxy are entitled to cast: PROVIDED, That when any class of shares or members is entitled to vote thereon by class, the proposed amendment must receive at least two-thirds of the votes of the members or shareholders of each class entitled to vote thereon as a class, who are present in person, by mail, by electronic transmission, or represented by proxy at such meeting.
Any number of amendments may be submitted and voted upon at any one meeting.
[
2001 c 271 s 11
;
2000 c 167 s 6
;
1969 ex.s. c 120 s 38
.]
RCW 24.06.195
Articles of amendment.
The articles of amendment shall be executed in duplicate originals by the corporation by an officer of the corporation, and shall set forth:
(1) The name of the corporation.
(2) Any amendment so adopted.
(3) If an amendment was adopted by the board of directors without being submitted for member or shareholder action, a statement to that effect and that member or shareholder action was not required; or a statement setting forth the date of the meeting of members and shareholders at which the amendment was adopted, that a quorum was present at such meeting, and that such amendment received at least two-thirds of the votes which members or shareholders of the corporation, and of each class entitled to vote thereon as a class, present at such meeting in person, by mail, by electronic transmission, or represented by proxy were entitled to cast, or a statement that such amendment was adopted by a consent in writing signed by all members and shareholders entitled to vote with respect thereto.
[
2001 c 271 s 12
;
2000 c 167 s 7
;
1982 c 35 s 130
;
1981 c 302 s 6
;
1969 ex.s. c 120 s 39
.]
NOTES:
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
Severability
—
1981 c 302:
See note following RCW 19.76.100
.
RCW 24.06.200
Filing of articles of amendment
—
Procedure.
The articles of amendment shall be delivered to the secretary of state for filing in accordance with Article 2 of chapter
23.95
RCW.
[
2015 c 176 s 4110
;
1982 c 35 s 131
;
1981 c 302 s 7
;
1969 ex.s. c 120 s 40
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
Severability
—
1981 c 302:
See note following RCW 19.76.100
.
RCW 24.06.205
When amendment becomes effective
—
Existing actions and rights not affected.
Upon the filing of the articles of amendment by the secretary of state, the amendment shall become effective as provided in RCW 23.95.210
and the articles of incorporation shall be deemed to be amended accordingly.
No amendment shall affect any existing cause of action in favor of or against such corporation, nor any pending action to which such corporation shall be a party, nor the existing rights of persons other than members; and, in the event the corporate name shall be changed by amendment, no action brought by or against such corporation under its former name shall abate for that reason.
[
2015 c 176 s 4111
;
1982 c 35 s 132
;
1969 ex.s. c 120 s 41
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.207
Restated articles of incorporation.
A domestic corporation may at any time restate its articles of incorporation as theretofore amended, by a resolution adopted by the board of directors.
Upon the adoption of the resolution, restated articles of incorporation shall be executed by the corporation by one of its officers and shall set forth all of the operative provisions of the articles of incorporation as theretofore amended together with a statement that the restated articles of incorporation correctly set forth without change the corresponding provisions of the articles of incorporation as theretofore amended and that the restated articles of incorporation supersede the original articles of incorporation and all amendments thereto.
The restated articles of incorporation shall be delivered to the secretary of state for filing in accordance with Article 2 of chapter
23.95
RCW.
Upon the filing of the restated articles of incorporation by the secretary of state, the restated articles of incorporation shall become effective as provided in RCW 23.95.210
and shall supersede the original articles of incorporation and all amendments thereto.
[
2015 c 176 s 4112
;
1982 c 35 s 133
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.210
Procedure for merger.
Any two or more domestic corporations may merge into one of such corporations pursuant to a plan of merger approved in the manner provided in this chapter.
Each corporation shall adopt a plan of merger setting forth:
(1) The names of the corporations proposing to merge, and the name of the corporation into which they propose to merge, which is hereinafter designated as the surviving corporation.
(2) The terms and conditions of the proposed merger.
(3) A statement of any changes in the articles of incorporation of the surviving corporation to be effected by such merger.
(4) Such other provisions with respect to the proposed merger as are deemed necessary or desirable.
[
1969 ex.s. c 120 s 42
.]
RCW 24.06.215
Procedure for consolidation.
Any two or more domestic corporations may consolidate into a new corporation pursuant to a plan of consolidation approved in the manner provided in this chapter.
Each corporation shall adopt a plan of consolidation setting forth:
(1) The names of the corporations proposing to consolidate, and the name of the new corporation into which they propose to consolidate, which is hereinafter designated as the new corporation.
(2) The terms and conditions of the proposed consolidation.
(3) With respect to the new corporation, all of the statements required to be set forth in articles of incorporation for corporations organized under this chapter.
(4) Such other provisions with respect to the proposed consolidation as are deemed necessary or desirable.
[
1969 ex.s. c 120 s 43
.]
RCW 24.06.220
Approval of merger or consolidation.
A plan of merger or consolidation shall be adopted in the following manner:
The board of directors of such corporation shall adopt a resolution approving the proposed plan and directing that it be submitted to a vote at a meeting of members or shareholders which may be either an annual or a special meeting. Written or printed notice or, if specifically permitted by the articles of incorporation or bylaws of the corporation, notice by electronic transmission, setting forth the proposed plan or a summary thereof shall be given to each member and shareholder within the time and in the manner provided in this chapter for the giving of notice of meetings of members and shareholders. The proposed plan shall be adopted upon receiving at least two-thirds of the votes which members and shareholders present in person or by mail or by electronic transmission at each such meeting or represented by proxy are entitled to cast: PROVIDED, That when any class of shares or members is entitled to vote thereon as a class, the proposed amendment must receive at least two-thirds of the votes of the members or shareholders of each class entitled to vote thereon as a class, who are present in person, by mail, by electronic transmission, or represented by proxy at such meeting.
After such approval, and at any time prior to the filing of the articles of merger or consolidation, the merger or consolidation may be abandoned pursuant to provisions therefor, if any, set forth in the plan of merger or consolidation.
[
2000 c 167 s 8
;
1969 ex.s. c 120 s 44
.]
RCW 24.06.225
Articles of merger or consolidation.
(1) Upon approval, articles of merger or articles of consolidation shall be executed by each corporation, by an officer of each corporation, and shall set forth:
(a) The plan of merger or the plan of consolidation;
(b) A statement setting forth the date of the meeting of members or shareholders at which the plan was adopted, that a quorum was present at such meeting, and that such plan received at least two-thirds of the votes which members and shareholders of the corporation and of each class entitled to vote thereon as a class, present at such meeting in person or by mail or by electronic transmission or represented by proxy were entitled to cast, or a statement that such amendment was adopted by a consent in writing signed by all members.
(2) The articles of merger or articles of consolidation shall be delivered to the secretary of state for filing in accordance with Article 2 of chapter
23.95
RCW.
[
2015 c 176 s 4113
;
2000 c 167 s 9
;
1982 c 35 s 134
;
1981 c 302 s 8
;
1969 ex.s. c 120 s 45
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
Severability
—
1981 c 302:
See note following RCW 19.76.100
.
RCW 24.06.230
Merger or consolidation
—
When effected.
Upon the filing of articles of merger, or the articles of consolidation by the secretary of state, the merger or consolidation shall be effected.
[
1982 c 35 s 135
;
1969 ex.s. c 120 s 46
.]
NOTES:
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.233
Merger or consolidation of domestic and foreign corporation
—
Participation in an exchange.
One or more foreign corporations and one or more domestic corporations may be merged or consolidated or participate in an exchange in the following manner, if such merger, consolidation, or exchange is permitted by the laws of the state under which each such foreign corporation is organized:
(1) Each domestic corporation shall comply with the provisions of this title with respect to the merger, consolidation, or exchange, as the case may be, of domestic corporations and each foreign corporation shall comply with the applicable provisions of the laws of the state under which it is organized.
(2) If the surviving or new corporation in a merger or consolidation is to be governed by the laws of any state other than this state, it shall comply with the provisions of this title and Article 5 of chapter
23.95
RCW with respect to foreign corporations if it is to transact business in this state, and in every case it shall file with the secretary of state of this state:
(a) An agreement that it may be served with process in accordance with RCW 23.95.450
in any proceeding for the enforcement of any obligation of any domestic corporation which is a party to such merger or consolidation and in any proceeding for the enforcement of the rights, if any, of a dissenting shareholder of any such domestic corporation against the surviving or new corporation; and
(b) An agreement that it will promptly pay to the dissenting shareholders of any such domestic corporation the amount, if any, to which they shall be entitled under the provisions of this title with respect to the rights of dissenting shareholders.
The effect of such merger or consolidation shall be the same as in the case of the merger or consolidation of domestic corporations, if the surviving or new corporation is to be governed by the laws of this state. If the surviving or new corporation is to be governed by the laws of any state other than this state, the effect of such merger or consolidation shall be the same as in the case of the merger or consolidation of domestic corporations except insofar as the laws of such other state provide otherwise.
(3) At any time prior to the effective date of the articles of merger, consolidation, or exchange, the merger, consolidation, or exchange, may be abandoned pursuant to provision therefor, if any, set forth in the plan of merger, consolidation or exchange. In the event the merger, consolidation, or exchange is abandoned, the parties thereto shall execute a notice of abandonment signed by an officer for each corporation signing the notice and deliver the notice to the secretary of state for filing in accordance with Article 2 of chapter
23.95
RCW.
[
2015 c 176 s 4114
;
1982 c 35 s 136
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.235
Effect of merger or consolidation.
When such merger or consolidation has been effected:
(1) The several corporations party to the plan of merger or consolidation shall be a single corporation, which, in the case of a merger, shall be that corporation designated in the plan of merger as the surviving corporation, and, in the case of a consolidation, shall be the new corporation provided for in the plan of consolidation.
(2) The separate existence of all corporations party to the plan of merger or consolidation, except the surviving or new corporation, shall cease.
(3) The surviving or new corporation shall have all the rights, privileges, immunities and powers, and shall be subject to all the duties and liabilities of a corporation organized under this chapter.
(4) The surviving or new corporation shall thereupon and thereafter possess all the rights, privileges, immunities, and franchises, whether of a public or a private nature, of each of the merging or consolidating corporations; all property, real, personal and mixed, and all debts due on whatever account, and all other choses in action, and all and every other interest, of or belonging to or due to each of the corporations so merged or consolidated, shall be taken and deemed to be transferred to and vested in such single corporation without further act or deed; and no title to any real estate, or any interest therein, vested in any of such corporations shall not revert nor be in any way impaired by reason of such merger or consolidation.
(5) The surviving or new corporation shall thenceforth be responsible and liable for all the liabilities and obligations of each of the corporations so merged or consolidated; and any claim existing or action or proceeding pending by or against any of such corporations may be prosecuted as if such merger or consolidation had not taken place, or such surviving or new corporation may be substituted in its place. No rights of creditors nor any liens upon the property of any such corporation shall be impaired by such merger or consolidation.
(6) In the case of a merger, the articles of incorporation of the surviving corporation shall be deemed to be amended to the extent, if any, that changes in its articles of incorporation are stated in the plan of merger; and, in the case of a consolidation, the statements set forth in the articles of consolidation and which are required or permitted to be set forth in the articles of incorporation of corporations organized under this chapter shall be deemed to be the articles of incorporation of the new corporation.
[
1969 ex.s. c 120 s 47
.]
RCW 24.06.240
Sale, lease, exchange, etc., of property and assets.
A sale, lease, exchange, or other disposition of all or substantially all of the property and assets of a corporation may be made upon such terms and conditions and for such consideration, which may consist in whole or in part of money or property, real or personal, including shares of any corporation for profit, domestic or foreign, as may be authorized in the following manner:
(1) The board of directors shall adopt a resolution recommending a sale, lease, exchange, or other disposition and directing that it be submitted to a vote at a meeting of members or shareholders which may be either an annual or a special meeting.
(2) Written or printed notice or, if specifically permitted by the articles of incorporation or bylaws of the corporation, notice by electronic transmission, stating that the purpose or one of the purposes of such meeting is to consider the sale, lease, exchange, or other disposition of all or substantially all of the property and assets of the corporation shall be given to each member and shareholder within the time and in the manner provided by this chapter for the giving of notice of meetings of members and shareholders.
(3) At such meeting the members may authorize such sale, lease, exchange, or other disposition and may fix, or may authorize the board of directors to fix, any or all of the terms and conditions thereof and the consideration to be received by the corporation therefor.
(4) Such authorization shall require at least two-thirds of the votes which members and shareholders present at such meetings in person, by mail, by electronic transmission, or represented by proxy are entitled to cast: PROVIDED, That even after such authorization by a vote of members or shareholders, the board of directors may, in its discretion, without further action or approval by members, abandon such sale, lease, exchange, or other disposition of assets, subject only to the rights of third parties under any contracts relating thereto.
[
2000 c 167 s 10
;
1969 ex.s. c 120 s 48
.]
RCW 24.06.245
Right of member or shareholder to dissent.
Any member or shareholder of a corporation shall have the right to dissent from any of the following corporate actions:
(1) Any plan of merger or consolidation to which the corporation is a party other than a merger or consolidation in which all members or shareholders of the corporation have the right to continue their membership or shareholder status in the surviving corporation on substantially similar terms; or
(2) Any sale or exchange of all or substantially all of the property and assets of the corporation not made in the usual and regular course of its business, including a sale in dissolution, but not including a sale pursuant to an order of a court having jurisdiction in the premises or a sale for cash on terms requiring that all or substantially all of the net proceeds of sale be distributed to the shareholders in accordance with their respective interests within one year after the date of sale; or
(3) Any amendment to the articles of incorporation that materially reduces the number of shares owned by a shareholder to a fraction of a share if the fractional share is to be acquired by the corporation for cash; or
(4) Any corporate action taken pursuant to a member or shareholder vote to the extent that the articles of incorporation, bylaws, or a resolution of the board of directors provides that voting or nonvoting members or shareholders are entitled to dissent and obtain payment for their membership or shares.
A member or shareholder entitled to dissent and obtain payment for the member's or shareholder's membership interest or shares under this chapter may not challenge the corporate action creating the member's or shareholder's entitlement unless the action fails to comply with the procedural requirements imposed by this title, the articles of incorporation, or the bylaws, or is fraudulent with respect to the member or shareholder or the corporation.
The provisions of this section shall not apply to the members or shareholders of the surviving corporation in a merger if such corporation is on the date of the filing of the articles of merger the owner of all the outstanding shares of the other corporations, domestic or foreign, which are parties to the merger.
The meeting notice for any meeting at which a proposed corporate action creating dissenters' rights is submitted to a vote must state that members or shareholders are or may be entitled to assert dissenters' rights and be accompanied by a copy of RCW 24.06.250
.
[
2001 c 271 s 13
;
1969 ex.s. c 120 s 49
.]
RCW 24.06.250
Exercise of right of dissent
—
Rights and liabilities.
Any member or shareholder electing to exercise such right of dissent shall file with the corporation, prior to or at the meeting of members and shareholders at which such proposed corporate action is submitted to a vote, a written objection to such proposed corporate action. If such proposed corporate action be approved by the required vote and such member or shareholder shall not have voted in favor thereof, such member or shareholder may, within ten days after the date on which the vote was taken, make written demand on the corporation, or, in the case of a merger or consolidation, on the surviving or new corporation, domestic or foreign, for payment of the fair value of such member's membership or of such shareholder's shares, and, if such proposed corporate action is effected, such corporation shall pay to such member, upon surrender of his or her membership certificate, if any, or to such shareholder, upon surrender of the certificate or certificates representing such shares, the fair value thereof as of the day prior to the date on which the vote was taken approving the proposed corporate action, excluding any appreciation or depreciation in anticipation of such corporate action. Any member or shareholder failing to make demand within the ten day period shall be bound by the terms of the proposed corporate action. Any member or shareholder making such demand shall thereafter be entitled only to payment as in this section provided and shall not be entitled to vote or to exercise any other rights of a member or shareholder.
No such demand shall be withdrawn unless the corporation shall consent thereto. The right of such member or shareholder to be paid the fair value of his or her membership or shares shall cease and his or her status as a member or shareholder shall be restored, without prejudice to any corporate proceedings which may have been taken during the interim, if:
(1) Such demand shall be withdrawn upon consent; or
(2) The proposed corporate action shall be abandoned or rescinded or the members or shareholders shall revoke the authority to effect such action; or
(3) In the case of a merger, on the date of the filing of the articles of merger the surviving corporation is the owner of all the outstanding shares of the other corporations, domestic and foreign, that are parties to the merger; or
(4) A court of competent jurisdiction shall determine that such member or shareholder is not entitled to the relief provided by this section.
Within ten days after such corporate action is effected, the corporation, or, in the case of a merger or consolidation, the surviving or new corporation, domestic or foreign, shall give written notice thereof to each dissenting member or shareholder who has made demand as herein provided, and shall make a written offer to each such member or shareholder to pay for such shares or membership at a specified price deemed by such corporation to be the fair value thereof. Except in cases where the fair value payable to dissenters is fixed in the articles of incorporation or pursuant to RCW 24.06.255, such notice and offer shall be accompanied by a balance sheet of the corporation in which the member holds his or her membership or the dissenting shareholder holds shares, as of the latest available date and not more than twelve months prior to the making of such offer, and a profit and loss statement of such corporation for the twelve months' period ended on the date of such balance sheet.
If the fair value payable to dissenting members or shareholders is fixed in the articles of incorporation or pursuant to RCW 24.06.255, or if within thirty days after the date on which such corporate action was effected the fair value of such shares or membership is agreed upon between any such dissenting member or shareholder and the corporation, payment therefor shall be made within ninety days after the date on which such corporate action was effected, upon surrender of the membership certificate, if any, or upon surrender of the certificate or certificates representing such shares. Upon payment of the agreed value the dissenting member or shareholder shall cease to have any interest in such membership or shares.
If the fair value payable to dissenting members or shareholders is not fixed in the articles of incorporation or pursuant to RCW 24.06.025, and within such period of thirty days a dissenting member or shareholder and the corporation do not so agree, then the dissenting member or shareholder shall be entitled to make written demand to the corporation, within sixty days after the date on which such corporate action was effected, requesting that the corporation petition for a determination of the fair value by a court. If such a demand is not timely made on the corporation, the right of such member or shareholder to demand to be paid the fair value of his or her membership or shares shall be forfeited. Within thirty days after receipt of such a written demand from any dissenting member or shareholder, the corporation shall, or at its election at any time within ninety days after the date on which such corporate action was effected may, file a petition in any court of competent jurisdiction in the county in this state where the registered office of the corporation is located praying that the fair value of such membership or shares be found and determined. If, in the case of a merger or consolidation, the surviving or new corporation is a foreign corporation without a registered office in this state, such petition shall be filed in the county where the registered office of the domestic corporation was last located. If the corporation shall fail to institute the proceeding as herein provided, any dissenting member or shareholder may do so in the name of the corporation. All dissenting members and shareholders, wherever residing, shall be made parties to the proceeding as an action against their memberships or shares quasi in rem. A copy of the petition shall be served on each dissenting member and shareholder who is a resident of this state and shall be served by registered or certified mail on each dissenting member or shareholder who is a nonresident. Service on nonresidents shall also be made by publication as provided by law. The jurisdiction of the court shall be plenary and exclusive. All members and shareholders who are parties to the proceeding shall be entitled to judgment against the corporation for the amount of the fair value of their shares. The court may, if it so elects, appoint one or more persons as appraisers to receive evidence and recommend a decision on the question of fair value. The appraisers shall have such power and authority as shall be specified in the order of their appointment or an amendment thereof. The judgment shall be payable only upon and concurrently with the surrender to the corporation of the membership certificate, if any, or of the certificate or certificates representing such shares. Upon payment of the judgment, the dissenting shareholder or member shall cease to have any interest in such shares or membership.
The judgment shall include an allowance for interest at such rate as the court may find to be fair and equitable in all the circumstances, from the date on which the vote was taken on the proposed corporate action to the date of payment.
The costs and expenses of any such proceeding shall be determined by the court and shall be assessed against the corporation, but all or any part of such costs and expenses may be apportioned and assessed as the court may deem equitable against any or all of the dissenting members and shareholders who are parties to the proceeding to whom the corporation shall have made an offer to pay for membership or shares if the court shall find that the action of such members or shareholders in failing to accept such offer was arbitrary or vexatious or not in good faith. Such expenses shall include reasonable compensation for and reasonable expenses of the appraisers, but shall exclude the fees and expenses of counsel for and experts employed by any party; but if the fair value of the memberships or shares as determined materially exceeds the amount which the corporation offered to pay therefor, or if no offer was made, the court in its discretion may award to any member or shareholder who is a party to the proceeding such sum as the court may determine to be reasonable compensation to any expert or experts employed by the member or shareholder in the proceeding.
Within twenty days after demanding payment for his or her shares or membership, each member and shareholder demanding payment shall submit the certificate or certificates representing his or her membership or shares to the corporation for notation thereon that such demand has been made. His or her failure to do so shall, at the option of the corporation, terminate his or her rights under this section unless a court of competent jurisdiction, for good and sufficient cause shown, shall otherwise direct. If membership or shares represented by a certificate on which notation has been so made shall be transferred, each new certificate issued therefor shall bear a similar notation, together with the name of the original dissenting holder of such membership or shares, and a transferee of such membership or shares shall acquire by such transfer no rights in the corporation other than those which the original dissenting member or shareholder had after making demand for payment of the fair value thereof.
[
2001 c 271 s 14
;
2000 c 167 s 11
;
1969 ex.s. c 120 s 50
.]
RCW 24.06.255
Payment of fair value to dissenting member or shareholder.
Notwithstanding any provision in this chapter for the payment of fair value to a dissenting member or shareholder, (1) the articles of incorporation may provide that a dissenting member or shareholder shall be limited to a return of a lesser amount, but in no event shall a dissenting member or shareholder be limited to a return of less than the consideration paid to the corporation for the membership or shares which he or she holds unless the fair value of the membership or shares is less than the consideration paid to the corporation, and (2) the fair value payable to a dissenting member of a consumer cooperative shall be a fixed amount equal to the consideration paid to the corporation for the member's current membership unless the articles of incorporation expressly provide for a greater or lesser amount.
[
2001 c 271 s 15
;
1969 ex.s. c 120 s 51
.]
RCW 24.06.260
Voluntary dissolution.
A corporation may dissolve and wind up its affairs in the following manner:
(1) The board of directors shall adopt a resolution recommending that the corporation be dissolved, and directing that the question of such dissolution be submitted to a vote at a meeting of members and shareholders which may be either an annual or a special meeting.
(2) Written or printed notice or, if specifically permitted by the articles of incorporation or bylaws of the corporation, notice by electronic transmission, stating that the purpose or one of the purposes of such meeting is to consider the advisability of dissolving the corporation shall be given to each member and shareholder within the time and in the manner provided in this chapter for the giving of notice of meetings of members and shareholders.
(3) A resolution to dissolve the corporation shall be adopted upon receiving at least two-thirds of the votes which members and shareholders present in person or by mail or by electronic transmission at such meeting or represented by proxy are entitled to cast.
Upon the adoption of such resolution by the members and shareholders, the corporation shall cease to conduct its affairs and, except insofar as may be necessary for the winding up thereof, shall immediately cause a notice of the proposed dissolution to be mailed to each known creditor of the corporation and to the department of revenue, and shall proceed to collect its assets and to apply and distribute them as provided in RCW 24.06.265
.
[
2000 c 167 s 12
;
1982 c 35 s 137
;
1969 ex.s. c 120 s 52
.]
NOTES:
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.265
Distribution of assets.
The assets of a corporation in the process of dissolution shall be applied and distributed as follows:
(1) All liabilities and obligations of the corporation shall be paid, satisfied and discharged, or adequate provision made therefor;
(2) Assets held by the corporation upon condition requiring return, transfer or conveyance, which condition occurs by reason of the dissolution, shall be returned, transferred, or conveyed in accordance with such requirements;
(3) Remaining assets, if any shall be distributed to the members, shareholders or others in accordance with the provisions of the articles of incorporation.
[
1969 ex.s. c 120 s 53
.]
RCW 24.06.270
Revocation of voluntary dissolution proceedings.
A corporation may, at any time prior to the issuance of a certificate of dissolution by the secretary of state, revoke the action theretofore taken to dissolve the corporation, in the following manner:
(1) The board of directors shall adopt a resolution recommending that the voluntary dissolution proceedings be revoked, and directing that the question of such revocation be submitted to a vote at a meeting of members or shareholders which may be either an annual or a special meeting.
(2) Written or printed notice or, if specifically permitted by the articles of incorporation or bylaws of the corporation, notice by electronic transmission, stating that the purpose or one of the purposes of the meeting is to consider the advisability of revoking the voluntary dissolution proceedings shall be given to each member and shareholder within the time and in the manner provided in this chapter for the giving of notice of meetings of members or shareholders.
(3) A resolution to revoke voluntary dissolution proceedings shall be adopted upon receiving at least two-thirds of the votes which members and shareholders present in person or by mail or by electronic transmission at such meeting or represented by proxy are entitled to cast.
[
2000 c 167 s 13
;
1969 ex.s. c 120 s 54
.]
RCW 24.06.275
Articles of dissolution.
If voluntary dissolution proceedings have not been revoked, then after all debts, liabilities and obligations of the corporation shall have been paid and discharged, or adequate provision shall have been made therefor, and all of the remaining property and assets of the corporation shall have been transferred, conveyed or distributed in accordance with the provisions of this chapter, articles of dissolution shall be executed in duplicate by the corporation, by an officer of the corporation; and such statement shall set forth:
(1) The name of the corporation.
(2) The date of the meeting of members or shareholders at which the resolution to dissolve was adopted, certifying that:
(a) A quorum was present at such meeting;
(b) Such resolution received at least two-thirds of the votes which members and shareholders present in person or by mail or by electronic transmission at such meeting or represented by proxy were entitled to cast or was adopted by a consent in writing signed by all members and shareholders;
(c) All debts, obligations, and liabilities of the corporation have been paid and discharged or that adequate provision has been made therefor;
(d) All the remaining property and assets of the corporation have been transferred, conveyed or distributed in accordance with the provisions of this chapter;
(e) There are no suits pending against the corporation in any court or, if any suits are pending against it, that adequate provision has been made for the satisfaction of any judgment, order or decree which may be entered; and
(f) A copy of a revenue clearance certificate issued pursuant to chapter
82.32
RCW.
[
2000 c 167 s 14
;
1993 c 356 s 17
;
1982 c 35 s 138
;
1969 ex.s. c 120 s 55
.]
NOTES:
Effective date
—
1993 c 356:
See note following RCW 24.06.046
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.280
Filing of articles of dissolution.
The articles of dissolution shall be delivered to the secretary of state for filing in accordance with Article 2 of chapter
23.95
RCW.
Upon the filing of the articles of dissolution, the corporate existence shall cease, except for the purpose of determining such suits, other proceedings and appropriate corporate action by members, directors and officers as are authorized in this chapter.
[
2015 c 176 s 4115
;
1982 c 35 s 139
;
1981 c 302 s 9
;
1969 ex.s. c 120 s 56
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
Severability
—
1981 c 302:
See note following RCW 19.76.100
.
RCW 24.06.285
Involuntary dissolution.
A corporation may be dissolved by decree of the superior court in an action filed on petition of the attorney general upon a showing that:
(1) The corporation procured its articles of incorporation through fraud; or
(2) The corporation has continued to exceed or abuse the authority conferred upon it by law.
[
1982 c 35 s 140
;
1969 ex.s. c 120 s 57
.]
NOTES:
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.290
Proceedings for administrative dissolution
—
Reinstatement
—
Survival of actions.
Failure of the corporation to file its annual report within the time required shall not derogate from the rights of its creditors, or prevent the corporation from being sued and from defending lawsuits, nor shall it release the corporation from any of the duties or liabilities of a corporation under law.
A corporation shall be administratively dissolved by the secretary of state under the circumstances and procedures provided in Article 6 of chapter
23.95
RCW.
A corporation which has been administratively dissolved under RCW 23.95.610
may apply to the secretary of state for reinstatement in accordance with RCW 23.95.615
.
When a corporation has been administratively dissolved under RCW 23.95.610, remedies available to or against it shall survive in the manner provided by RCW 24.06.335
and thereafter the directors of the corporation shall hold title to the property of the corporation as trustees for the benefit of its creditors and shareholders.
[
2015 c 176 s 4116
;
1994 c 287 s 10
;
1993 c 356 s 18
;
1982 c 35 s 141
;
1973 c 70 s 1
;
1969 ex.s. c 120 s 58
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Effective date
—
1993 c 356:
See note following RCW 24.06.046
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.295
Venue and process.
Every action for the involuntary dissolution of a corporation shall be commenced by the attorney general either in the superior court of the county in which the registered office of the corporation is situated, or in the superior court of Thurston county. Summons shall issue and be served as in other civil actions. If process is returned not found, the attorney general shall cause publication to be made as in other civil cases in a newspaper published in the county where the registered office of the corporation is situated, notifying the corporation of the pendency of such action, the title of the court, the title of the action, the date on or after which default may be entered, giving the corporation thirty days within which to appear, answer, and defend. The attorney general may include in one notice the names of any number of corporations against which actions are then pending in the same court. The attorney general shall cause a copy of such notice to be mailed by certified mail to the corporation at its registered office within ten days after the first publication thereof. The certificate of the attorney general of the mailing of such notice shall be prima facie evidence thereof. Such notice shall be published at least once each week for two successive weeks, and the first publication thereof may begin at any time after the summons has been returned not found. Unless a corporation shall have been personally served with summons, no default shall be taken against it less than thirty days from the first publication of such notice.
[
1969 ex.s. c 120 s 59
.]
RCW 24.06.300
Jurisdiction of court to liquidate assets and dissolve corporation.
The superior court shall have full power to liquidate the assets and to provide for the dissolution of a corporation when:
(1) In any action by a member, shareholder or director it is made to appear that:
(a) The directors are deadlocked in the management of the corporate affairs and that irreparable injury to the corporation is being suffered or is threatened by reason thereof, and that the members or shareholders are unable to break the deadlock; or
(b) The acts of the directors or those in control of the corporation are illegal, oppressive, or fraudulent; or
(c) The corporate assets are being misapplied or wasted; or
(d) The corporation is unable to carry out its purposes; or
(e) The shareholders have failed, for a period which includes at least two consecutive annual meeting dates, to elect successors to directors whose terms have expired or would have expired upon the election of their successors.
(2) In an action by a creditor:
(a) The claim of the creditor has been reduced to judgment and an execution thereon has been returned unsatisfied, and it is established that the corporation is insolvent; or
(b) The corporation has admitted in writing that the claim of the creditor is due and owing, and it is established that the corporation is insolvent.
(3) A corporation applies to have its dissolution continued under the supervision of the court.
(4) An action has been filed by the attorney general to dissolve the corporation and it is established that liquidation of its affairs should precede the entry of a decree of dissolution.
Proceedings under subsections (1), (2) or (3) of this section shall be brought in the county in which the registered office or the principal office of the corporation is situated.
It shall not be necessary to make directors, members or shareholders party to any such action or proceedings unless relief is sought against them personally.
[
1969 ex.s. c 120 s 60
.]
RCW 24.06.305
Procedure in liquidation of corporation in court.
(1) In proceedings to liquidate the assets and affairs of a corporation the court shall have the power to:
(a) Issue injunctions;
(b) Appoint a receiver or receivers pendente lite, with such powers and duties as the court may, from time to time, direct;
(c) Take such other proceedings as may be requisite to preserve the corporate assets wherever situated; and
(d) Carry on the affairs of the corporation until a full hearing can be had.
After a hearing had upon such notice as the court may direct to be given to all parties to the proceedings, and to any other parties in interest designated by the court, the court may appoint a receiver.
(2) The assets of the corporation or the proceeds resulting from the sale, conveyance, or other disposition thereof shall be applied and distributed as follows:
(a) All costs and expenses of the court proceedings, and all liabilities and obligations of the corporation shall be paid, satisfied and discharged, or adequate provision made therefor;
(b) Assets held by the corporation upon condition requiring return, transfer, or conveyance, which condition occurs by reason of the dissolution or liquidation, shall be returned, transferred, or conveyed in accordance with such requirements;
(c) Remaining assets, if any, shall be distributed to the members, shareholders, or others in accordance with the provisions of the articles of incorporation.
(3) The court shall have power to make periodic allowances, as expenses of the liquidation and compensation to the receivers and attorneys in the proceeding accrue, and to direct the payment thereof from the assets of the corporation or from the proceeds of any sale or disposition of such assets.
[
2004 c 165 s 41
;
1969 ex.s. c 120 s 61
.]
NOTES:
Purpose
—
Captions not law
—
2004 c 165:
See notes following RCW 7.60.005
.
RCW 24.06.310
Qualifications of receivers
—
Bond.
A receiver shall in all cases be a citizen of the United States or a corporation for profit authorized to act as receiver, which corporation may be a domestic corporation or a foreign corporation authorized to transact business in this state, and shall in all cases give such bond as the court may direct with such sureties as the court may require.
[
1969 ex.s. c 120 s 62
.]
RCW 24.06.315
Filing of claims in liquidation proceedings.
In proceedings to liquidate the assets and affairs of a corporation the court may require all creditors of the corporation to file with the clerk of the court or with the receiver, in such form as the court may prescribe, proofs under oath of their respective claims. If the court requires the filing of claims it shall fix a date, which shall be not less than four months from the date of the order, as the last day for the filing of claims, and shall prescribe the notice that shall be given to creditors and claimants of the date so fixed. Prior to the date so fixed, the court may extend the time for the filing of claims. Creditors and claimants failing to file proofs of claim on or before the date so fixed may be barred, by order of court, from participating in the distribution of the assets of the corporation.
[
1969 ex.s. c 120 s 63
.]
RCW 24.06.320
Discontinuance of liquidation proceedings.
The liquidation of the assets and affairs of a corporation may be discontinued at any time during the liquidation proceedings when it is established that cause for liquidation no longer exists. In such event the court shall dismiss the proceedings and direct the receiver to redeliver to the corporation all its remaining property and assets.
[
1969 ex.s. c 120 s 64
.]
RCW 24.06.325
Decree of involuntary dissolution.
In proceedings to liquidate the assets and affairs of a corporation, when the costs and expenses of such proceedings and all debts, obligations, and liabilities of the corporation shall have been paid and discharged and all of its remaining property and assets distributed in accordance with the provisions of this chapter, or in case its property and assets are not sufficient to satisfy and discharge such costs, expenses, debts, and obligations, and all the property and assets have been applied so far as they will go to their payment, the court shall enter a decree dissolving the corporation, whereupon the corporate existence shall cease.
[
1969 ex.s. c 120 s 65
.]
RCW 24.06.330
Filing of decree of dissolution.
In case the court shall enter a decree dissolving a corporation, it shall be the duty of the court clerk to cause a certified copy of the decree to be filed with the secretary of state. No fee shall be charged by the secretary of state for the filing thereof.
[
1969 ex.s. c 120 s 66
.]
RCW 24.06.335
Survival of remedies after dissolution.
The dissolution of a corporation whether (1) by the filing and issuance of a certificate of dissolution, voluntary or involuntary, by the secretary of state, or (2) by a decree of court when the court has not liquidated the assets and affairs of the corporation as provided in this chapter, or (3) by expiration of its period of duration, shall not take away or impair any remedy available to or against such corporation, its directors, officers, members, or shareholders, for any right or claim existing, or any liability incurred, prior to such dissolution if action or other proceeding thereon is commenced within two years from the date of dissolution. Any such action or proceeding by or against the corporation may be prosecuted or defended by the corporation in its corporate name and capacity. The members, shareholders, directors, and officers shall have power to take such corporate or other action as shall be appropriate to protect any remedy, right, or claim. If the corporation was dissolved by the expiration of its period of duration, such corporation may amend its articles of incorporation at any time during the two years following dissolution, in order to extend its period of duration. If, during the period of dissolution, another person or corporation has reserved or adopted a corporate name which is identical to or deceptively similar to the dissolved corporation's name, the corporation extending its period of duration shall be required to adopt another name consistent with the requirements of this chapter and to amend its articles of incorporation accordingly. The corporation shall also pay to the state all fees and penalties which would otherwise have been due if the corporate charter had not expired, plus a reinstatement fee of twenty-five dollars.
[
1982 c 35 s 142
;
1969 ex.s. c 120 s 67
.]
NOTES:
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.340
Registration of foreign corporation
—
Right to conduct affairs in the state.
(1) No foreign corporation shall have the right to conduct affairs in this state until it registers with the secretary of state in accordance with the requirements of Article 5 of chapter
23.95
RCW.
(2) A nonexhaustive list of activities that do not constitute conducting affairs in this state is provided in RCW 23.95.520
.
[
2015 c 176 s 4117
;
1969 ex.s. c 120 s 68
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
RCW 24.06.345
Effect of registration
—
Governing law.
A foreign corporation that registers to conduct affairs in this state is subject to RCW 23.95.500
relating to the effect of registration and the governing law for registered foreign corporations.
[
2015 c 176 s 4118
;
1969 ex.s. c 120 s 69
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
RCW 24.06.350
Corporate name of foreign corporation.
The corporate name of a foreign corporation registered in this state must comply with the provisions of RCW 23.95.525
and Article 3 of chapter
23.95
RCW.
[
2015 c 176 s 4119
;
1982 c 35 s 143
;
1969 ex.s. c 120 s 70
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
Registration of corporate name: RCW 24.06.047
.
Reservation of exclusive right to use corporate name: RCW 24.06.046
.
RCW 24.06.360
Foreign registration statement
—
Filing.
A foreign corporation may register to conduct affairs in this state by delivering to the secretary of state for filing a foreign registration statement in accordance with RCW 23.95.510
.
[
2015 c 176 s 4120
;
1989 c 307 s 38
;
1982 c 45 s 2
;
1969 ex.s. c 120 s 72
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Legislative finding
—
1989 c 307:
See note following RCW 23.86.007
.
Application
—
1989 c 307:
See RCW 23.86.900
.
RCW 24.06.367
Certificate of authority as insurance company
—
Filing of documents.
For those corporations that have a certificate of authority, are applying for, or intend to apply for a certificate of authority from the insurance commissioner as an insurance company under chapter
48.05
RCW, whenever under this chapter corporate documents are required to be filed with the secretary of state, the documents shall be filed with the insurance commissioner rather than the secretary of state.
[
1998 c 23 s 14
.]
RCW 24.06.369
Certificate of authority as insurance company
—
Registration or reservation of name.
For those corporations that intend to apply for a certificate of authority from the insurance commissioner as an insurance company under chapter
48.05
RCW, whenever under this chapter a corporation may register or reserve a corporate name, the registration or reservation shall be filed with the insurance commissioner rather than the secretary of state. The secretary of state and insurance commissioner shall cooperate with each other in registering or reserving a corporate name so that there is no duplication of the name.
[
1998 c 23 s 15
.]
RCW 24.06.370
Authorization to conduct affairs in the state
—
Right of state to terminate registration.
Upon the filing of the foreign registration statement by the secretary of state, the corporation shall be authorized to conduct affairs in this state for those purposes set forth in its application subject to the right of the state to terminate the registration as provided in RCW 23.95.550
.
[
2015 c 176 s 4121
;
1982 c 35 s 145
;
1969 ex.s. c 120 s 74
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.375
Registered agent of foreign corporation.
Every foreign corporation registered to conduct affairs in this state shall have and continuously maintain in this state a registered agent in accordance with Article 4 of chapter
23.95
RCW.
[
2015 c 176 s 4122
;
1969 ex.s. c 120 s 75
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
RCW 24.06.380
Change of registered agent of foreign corporation.
A foreign corporation registered to conduct affairs in this state may change its registered agent by delivering to the secretary of state for filing a statement of change in accordance with RCW 23.95.430
. The statement shall be executed by the corporation, by an officer of the corporation.
A registered agent may change its information on file with the secretary of state in accordance with RCW 23.95.435
or
23.95.440
.
[
2015 c 176 s 4123
;
1993 c 356 s 19
;
1982 c 35 s 146
;
1969 ex.s. c 120 s 76
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Effective date
—
1993 c 356:
See note following RCW 24.06.046
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.385
Resignation of registered agent.
Any registered agent in this state appointed by a foreign corporation may resign as such agent by executing and delivering to the secretary of state for filing a statement of resignation in accordance with RCW 23.95.445
.
[
2015 c 176 s 4124
;
1969 ex.s. c 120 s 77
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
RCW 24.06.390
Service of process, notice, or demand on corporation.
Service of any process, notice or demand required or permitted by law to be served upon the corporation may be made in accordance with RCW 23.95.450
.
[
2015 c 176 s 4125
;
1969 ex.s. c 120 s 78
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
RCW 24.06.395
Failure to appoint or maintain agent
—
Service of process, notice, or demand.
Whenever a foreign corporation authorized to conduct affairs in this state shall fail to appoint or maintain a registered agent in this state, or whenever any such registered agent cannot with reasonable diligence be found at the registered office, or whenever the certificate of authority of a foreign corporation shall be suspended or revoked service of any process, notice, or demand upon the corporation may be made in accordance with RCW 23.95.450
. Nothing contained in this section shall limit or affect the right to serve any process, notice or demand, required or permitted by law to be served upon a corporation in any other manner now or hereafter permitted by law.
[
2015 c 176 s 4126
;
1982 c 35 s 147
;
1969 ex.s. c 120 s 79
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.400
Amendment to articles of incorporation of foreign corporation.
Whenever the articles of incorporation of a foreign corporation authorized to conduct affairs in this state are amended, such foreign corporation shall, within thirty days after such amendment becomes effective, file in the office of the secretary of state a copy of such amendment duly authenticated by the proper officer designated under the laws of the state or country in which it is incorporated: PROVIDED, That the filing thereof shall not of itself enlarge or alter the purpose or purposes for which such corporation is authorized to pursue in conducting its affairs in this state, nor authorize such corporation to conduct affairs in this state under any other name than the name set forth in its certificate of authority.
[
1969 ex.s. c 120 s 80
.]
RCW 24.06.405
Merger of foreign corporation authorized to conduct affairs in this state.
Whenever a foreign corporation authorized to conduct affairs in this state shall be a party to a statutory merger permitted by the laws of the state or country under which it is incorporated, and such corporation shall be the surviving corporation, it shall, within thirty days after such merger becomes effective, file with the secretary of state a copy of the articles of merger duly authenticated by the proper officer designated under the laws of the state or country in which such statutory merger was effected; and it shall not be necessary for such corporation to procure either a new or amended certificate of authority to conduct affairs in this state unless the name of such corporation be changed thereby or unless the corporation desires to pursue in this state other or additional purposes than those which it is then authorized to pursue in this state.
[
1969 ex.s. c 120 s 81
.]
RCW 24.06.410
Amended foreign registration statement.
A foreign corporation registered to conduct affairs in this state shall amend its foreign registration statement under the circumstances specified in RCW 23.95.515
.
[
2015 c 176 s 4127
;
1969 ex.s. c 120 s 82
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
RCW 24.06.415
Withdrawal of foreign corporation.
A foreign corporation registered to conduct affairs in this state may withdraw from this state by delivering a statement of withdrawal to the secretary of state for filing in accordance with RCW 23.95.530
.
[
2015 c 176 s 4128
;
1993 c 356 s 20
;
1982 c 35 s 148
;
1969 ex.s. c 120 s 83
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Effective date
—
1993 c 356:
See note following RCW 24.06.046
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.425
Termination of registration.
The registration of a foreign corporation to conduct affairs in this state may be terminated by the secretary of state in accordance with RCW 23.95.550
.
[
2015 c 176 s 4129
;
1982 c 35 s 150
;
1969 ex.s. c 120 s 85
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.435
Conducting affairs without registering.
A foreign corporation conducting affairs in this state without registering with the secretary of state is subject to RCW 23.95.505
.
[
2015 c 176 s 4130
;
1969 ex.s. c 120 s 87
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
RCW 24.06.440
Annual report of domestic and foreign corporations.
Each domestic corporation, and each foreign corporation registered to conduct affairs in this state, shall deliver an annual report to the secretary of state in accordance with RCW 23.95.255
.
[
2015 c 176 s 4131
;
1993 c 356 s 22
;
1982 c 35 s 152
;
1969 ex.s. c 120 s 88
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Effective date
—
1993 c 356:
See note following RCW 24.06.046
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.450
Applicable fees, charges, and penalties.
Corporations are subject to the applicable fees, charges, and penalties established by the secretary of state under RCW 23.95.260
and
43.07.120
.
[
2015 c 176 s 4132
;
2010 1st sp.s. c 29 s 4
;
1993 c 269 s 7
;
1991 c 223 s 2
;
1982 c 35 s 154
;
1981 c 230 s 6
;
1973 c 70 s 2
;
1969 ex.s. c 120 s 90
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
2010 1st sp.s. c 29:
"It is the intent of the legislature to restructure certain fees for the division of corporations of the office of the secretary of state in a manner that has minimal revenue impact but moves the division of corporations towards a more self-sustaining budget." [
2010 1st sp.s. c 29 s 1
.]
Effective date
—
1993 c 269:
See note following RCW 23.86.070
.
Effective date
—
1991 c 223:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect on July 1, 1991." [
1991 c 223 s 4
.]
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.462
Fees for services by secretary of state.
See RCW 43.07.120
.
RCW 24.06.465
Penalties imposed upon corporation
—
Penalty established by secretary of state.
(1) Each corporation, domestic or foreign, which fails or refuses to file its annual report for any year within the time prescribed by this chapter shall be subject to a penalty as established and assessed by the secretary of state.
(2) Each corporation, domestic or foreign, which fails or refuses to answer truthfully and fully within the time prescribed by this chapter any interrogatories propounded by the secretary of state in accordance with the provisions of this chapter, is guilty of a misdemeanor and upon conviction thereof shall be fined in an amount not to exceed five hundred dollars on each count.
[
2003 c 53 s 165
;
1994 c 287 s 11
;
1969 ex.s. c 120 s 93
.]
NOTES:
Intent
—
Effective date
—
2003 c 53:
See notes following RCW 2.48.180
.
RCW 24.06.470
Penalties imposed upon directors and officers.
Each director and officer of a corporation, domestic or foreign, who fails or refuses within the time prescribed by this chapter, to answer truthfully and fully any interrogatories propounded to him or her by the secretary of state in accordance with the provisions of this chapter, which is known to such officer or director to be false in any material respect, shall be deemed to be guilty of a misdemeanor, and upon conviction thereof shall be fined in an amount not to exceed five hundred dollars on each count.
[
2015 c 176 s 4133
;
2011 c 336 s 669
;
1969 ex.s. c 120 s 94
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
RCW 24.06.475
Interrogatories by secretary of state.
The secretary of state may propound to any corporation, domestic or foreign, subject to the provisions of this chapter, and to any officer or director thereof such interrogatories as may be reasonably necessary and proper to enable the secretary of state to ascertain whether such corporation has complied with all of the provisions of this chapter applicable to such corporation. All such interrogatories shall be answered within thirty days after the mailing thereof, or within such additional time as shall be fixed by the secretary of state, and the answers thereto shall be full and complete, made in writing, and under oath. If such interrogatories are directed to an individual, they shall be answered personally by him or her, and if directed to the corporation they shall be answered by the president, a vice president, a secretary or any assistant secretary thereof. The secretary of state need not file any document to which such interrogatories relate until such interrogatories are answered as required by this section, and even not then if the answers thereto disclose that the document is not in conformity with the provisions of this chapter.
The secretary of state shall certify to the attorney general, for such action as the attorney general may deem appropriate, all interrogatories and answers thereto which disclose a violation of any of the provisions of this chapter.
[
2011 c 336 s 670
;
1982 c 35 s 157
;
1969 ex.s. c 120 s 95
.]
NOTES:
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.480
Confidential nature of information disclosed by interrogatories.
Interrogatories propounded by the secretary of state and the answers thereto shall not be open to public inspection, nor shall the secretary of state disclose any facts or information obtained therefrom unless (1) his or her official duty may require that the same be made public, or (2) such interrogatories or the answers thereto are required for use in evidence in any criminal proceedings or other action by the state.
[
1982 c 35 s 158
;
1969 ex.s. c 120 s 96
.]
NOTES:
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.485
Power and authority of secretary of state.
The secretary of state shall have all power and authority reasonably necessary for the efficient and effective administration of this chapter, including the adoption of rules under chapter
34.05
RCW.
[
1982 c 35 s 159
;
1969 ex.s. c 120 s 97
.]
NOTES:
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
Power and authority of secretary of state: RCW 23B.01.300
.
RCW 24.06.490
Duty of secretary of state to file
—
Review of refusal to file.
RCW 23.95.225
governs the secretary of state's duty to file records delivered to the secretary of state for filing, the manner and effect of filing, and procedures that apply when the secretary of state refuses to file a record.
[
2015 c 176 s 4134
;
1982 c 35 s 160
;
1969 ex.s. c 120 s 98
.]
NOTES:
Effective date
—
Contingent effective date
—
2015 c 176:
See note following RCW 23.95.100
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.500
Greater voting requirements.
Whenever, with respect to any action to be taken by the members, shareholders or directors of a corporation, the articles of incorporation require the vote or concurrence of a greater proportion of the members, shareholders or directors, as the case may be, than required by this chapter with respect to such action, the provisions of the articles of incorporation shall control.
[
1969 ex.s. c 120 s 100
.]
RCW 24.06.505
Waiver of notice.
Whenever any notice is required to be given to any member, shareholder or director of a corporation under the provisions of this chapter or under the provisions of the articles of incorporation or bylaws of the corporation, a waiver thereof in writing signed by the person or persons entitled to such notice, whether made before or given after the time stated therein, shall be equivalent to the giving of such notice.
[
1969 ex.s. c 120 s 101
.]
RCW 24.06.510
Action by members or directors without a meeting.
Any action required by this chapter to be taken at a meeting of the members, shareholders or directors of a corporation, or any action which may be taken at a meeting of the members, shareholders or directors, may be taken without a meeting, if a consent in writing, setting forth the action so taken, is signed by all of the members and shareholders entitled to vote thereon, or by all of the directors, as the case may be, unless the articles or bylaws provide to the contrary.
Such consent shall have the same force and effect as a unanimous vote, and may be stated as such in any articles or document filed with the secretary of state.
[
1969 ex.s. c 120 s 102
.]
RCW 24.06.515
Unauthorized assumption of corporate powers.
All persons who assume to act as a corporation without authority so to do shall be jointly and severally liable for all debts and liabilities incurred or arising as a result thereof.
[
1969 ex.s. c 120 s 103
.]
RCW 24.06.520
Reinstatement and renewal of corporate existence
—
Fee.
If the term of existence of a corporation which was organized under this chapter, or which has availed itself of the privileges thereby provided expires, such corporation shall have the right to renew within two years of the expiration of its term of existence. The corporation may renew the term of its existence for a definite period or perpetually and be reinstated under any name not then in use by or reserved for a domestic corporation organized under any act of this state or a foreign corporation authorized under any act of this state to transact business or conduct affairs in this state. To do so the directors, members and officers shall adopt amended articles of incorporation containing a certification that the purpose thereof is a reinstatement and renewal of the corporate existence. They shall proceed in accordance with the provisions of this chapter for the adoption and filing of amendments to articles of incorporation. Thereupon such corporation shall be reinstated and its corporate existence renewed as of the date on which its previous term of existence expired and all things done or omitted by it or by its officers, directors, agents and members before such reinstatement shall be as valid and have the same legal effect as if its previous term of existence had not expired.
A corporation reinstating under this section shall pay to the state all fees and penalties which would have been due if the corporate charter had not expired, plus a reinstatement fee established by the secretary of state by rule.
[
1993 c 269 s 9
;
1982 c 35 s 162
;
1969 ex.s. c 120 s 106
.]
NOTES:
Effective date
—
1993 c 269:
See note following RCW 23.86.070
.
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.525
Reorganization of corporations or associations in accordance with this chapter.
Any corporation or association organized under any other statute may be reorganized under the provisions of this chapter by adopting and filing amendments to its articles of incorporation in accordance with the provisions of this chapter for amending articles of incorporation. The articles of incorporation as amended must conform to the requirements of this chapter, and shall state that the corporation accepts the benefits and will be bound by the provisions of this chapter.
[
1969 ex.s. c 120 s 107
.]
RCW 24.06.600
Locally regulated utilities
—
Attachments to poles.
(1) As used in this section:
(a) "Attachment" means the affixation or installation of any wire, cable or other physical material capable of carrying electronic impulses or light waves for the carrying of intelligence for telecommunications or television, including, but not limited to cable, and any related device, apparatus, or auxiliary equipment upon any pole owned or controlled in whole or in part by one or more locally regulated utilities where the installation has been made with the necessary consent.
(b) "Locally regulated utility" means an [a] mutual corporation organized under this chapter for the purpose of providing utility service and not subject to rate or service regulation by the utilities and transportation commission.
(c) "Nondiscriminatory" means that pole owners may not arbitrarily differentiate among or between similar classes of persons approved for attachments.
(2) All rates, terms, and conditions made, demanded or received by a locally regulated utility for attachments to its poles must be just, reasonable, nondiscriminatory and sufficient. A locally regulated utility shall levy attachment space rental rates that are uniform for the same class of service within the locally regulated utility service area.
(3) Nothing in this section shall be construed or is intended to confer upon the utilities and transportation commission any authority to exercise jurisdiction over locally regulated utilities.
[
1996 c 32 s 2
.]
RCW 24.06.605
Locally regulated utilities
—
Involuntary termination of electric service during heat-related alerts prohibited
—
Reconnection and repayment plan
—
Report.
(1) As used in this section, any locally regulated utility as defined in RCW 24.06.600
may not effect, due to lack of payment, an involuntary termination of electric utility service to any residential user, including tenants of metered apartment buildings and residents of mobile homes, on any day for which the national weather service has issued or has announced that it intends to issue a heat-related alert, such as an excessive heat warning, a heat advisory, an excessive heat watch, or a similar alert, for the area in which the residential user's address is located.
(2)(a) A residential user at whose dwelling electric utility service has been disconnected for lack of payment may request that the locally regulated utility reconnect service on any day for which the national weather service has issued or has announced that it intends to issue a heat-related alert, such as an excessive heat warning, a heat advisory, an excessive heat watch, or a similar alert, for the area in which the residential user's address is located. The locally regulated utility shall inform all customers in the notice of disconnection of the ability to seek reconnection and provide clear and specific information on how to make that request, including how to contact the utility.
(b) Upon receipt of a request made pursuant to (a) of this subsection, the locally regulated utility shall promptly make a reasonable attempt to reconnect service to the dwelling. The locally regulated utility, in connection with a request made pursuant to (a) of this subsection, may require the residential user to enter into a payment plan prior to reconnecting service to the dwelling. If the locally regulated utility requires the residential user to enter into a repayment plan, the repayment plan must comply with subsection (3) of this section.
(3) A repayment plan required by a locally regulated utility pursuant to subsection (2)(b) of this section will be designed both to pay the past due bill by the following May 15th, or as soon as possible after May 15th if needed to maintain monthly payments that are no greater than six percent of the customer's monthly income, and to pay for continued utility service. The plan must not require monthly payments in excess of six percent of the customer's monthly income. A customer may agree to pay a higher percentage during this period, but will not be in default unless payment during this period is less than six percent of the customer's monthly income. If assistance payments are received by the customer subsequent to implementation of the plan, the customer shall contact the locally regulated utility to reformulate the plan.
(4) On an annual basis, each locally regulated utility with more than 25,000 retail electric customers in Washington must submit a report to the department of commerce that includes the total number of disconnections that occurred on each day for which the national weather service issued, or announced that it intended to issue, a heat-related alert. Locally regulated utilities with fewer than 25,000 retail electric customers in Washington must provide similar information upon request by the department.
(a) Subject to availability, each locally regulated utility must provide any other information related to utility disconnections that is requested by the department.
(b) The information required in this subsection must be submitted in a form, timeline, and manner as prescribed by the department.
[
2023 c 105 s 2
.]
RCW 24.06.610
Tariff for irrigation pumping service
—
Authority for locally regulated utility to buy back electricity.
The board may approve a tariff for irrigation pumping service that allows the locally regulated utility to buy back electricity from customers to reduce electricity usage by those customers during the locally regulated utility's particular irrigation season.
[
2001 c 122 s 5
.]
NOTES:
Effective date
—
2001 c 122:
See note following RCW 80.28.310
.
RCW 24.06.615
Conversion of domestic corporation to limited cooperative association
—
Procedure.
(1) Except as provided in subsection (2) of this section, a domestic corporation organized under this chapter, and taking the election provided in RCW 24.06.032
(1), may convert to a limited cooperative association pursuant to RCW 23.100.1302
through
23.100.1314
.
(2) This section does not apply to a domestic corporation organized for the purpose of generating, purchasing, selling, marketing, transmitting, or distributing electric energy.
[
2019 c 37 s 1405
.]
NOTES:
Uniformity of application and construction
—
Savings
—
2019 c 37:
See RCW 23.100.1501
and
23.100.1503
.
RCW 24.06.900
Short title.
This chapter shall be known and may be cited as the "Nonprofit Miscellaneous and Mutual Corporation Act".
[
1982 c 35 s 163
;
1969 ex.s. c 120 s 104
.]
NOTES:
Intent
—
Severability
—
Effective dates
—
Application
—
1982 c 35:
See notes following RCW 43.07.160
.
RCW 24.06.905
Existing liabilities not terminated
—
Continuation of corporate existence
—
Application of chapter.
The enactment of this chapter shall not have the effect of terminating, or in any way modifying, any liability, civil or criminal, which shall already be in existence at the date this chapter becomes effective; and any corporation existing under any prior law which expires on or before the date when this chapter takes effect shall continue its corporate existence: PROVIDED, That this chapter shall apply prospectively to all existing corporations which do not otherwise qualify under the provisions of Titles
23B
and
24
RCW, to the extent permitted by the Constitution of this state and of the United States.
[
1991 c 72 s 44
;
1969 ex.s. c 120 s 105
.]
RCW 24.06.920
Effective date
—
1969 ex.s. c 120.
This chapter is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions and shall take effect July 1, 1969: PROVIDED, That no corporation existing on the effective date of this chapter shall be required to conform to the provisions of this chapter until July 1, 1971.
[
1969 ex.s. c 120 s 110
.]