Assessments

Utah Code tit. 16, ch. 16-4, pt. 16-4-P2

in effect

Utah Code § 16-4-201 Assessments.

16-4-201. Assessments. (1) The shares of a nonprofit corporation are subject to assessment for any corporate purpose, except to the extent proscribed by the articles of incorporation. (2) The shares of a profit corporation are subject to assessment if: (a) those shares were subject to assessment before May 1, 2007; and (b) the assessment is not proscribed by the corporation's articles of incorporation. Enacted by Chapter 367, 2007 General Session

Utah Code § 16-4-202 Procedure for assessment in absence of provisions in articles or bylaws.

16-4-202. Procedure for assessment in absence of provisions in articles or bylaws. (1) An assessment shall be levied in the manner this chapter provides, unless other commercially reasonable procedures are provided in the articles of incorporation or bylaws. (2) Each assessment shall comply with the requirements of Section 16-4-203. Enacted by Chapter 367, 2007 General Session

Utah Code § 16-4-203 Equitable assessment.

16-4-203. Equitable assessment. (1) (a) Subject to Subsection (2), all shares subject to assessment shall be assessed equitably. (b) Different classes of shares, and shares with different rights or benefits, may be subject to differing assessments. (2) Shares may also be assessed on any basis required by: (a) any existing or future contract between: (i) the United States and a water company; (ii) the United States and the shareholders of a water company; or (iii) a water company and one or more shareholders of the water company; or (b) any contract of subscription for shares in a water company contracting with the United States. (3) For purposes of Subsection (2), "contract" does not include the articles of incorporation or the bylaws. Enacted by Chapter 367, 2007 General Session

Utah Code § 16-4-204 Order levying assessment -- Contents.

16-4-204. Order levying assessment -- Contents. (1) An assessment may be levied by order of the board of directors. (2) An order levying an assessment shall: (a) specify the amount of the levy on each share; (b) specify when, to whom, and where the assessment is payable; and (c) identify the day on which an unpaid assessment becomes delinquent. (3) The date on which an unpaid assessment is considered delinquent shall be at least 30 days after notice of assessment is given as provided in Section 16-4-206. (4) If assessments are not levied on an equal basis for all shares, the order shall state the equitable basis for the differing assessments. Enacted by Chapter 367, 2007 General Session

Utah Code § 16-4-205 Notice of assessment -- Form and contents.

16-4-205. Notice of assessment -- Form and contents. When the board of directors levies an assessment, the secretary shall prepare a notice of assessment, including: (1) the name of the corporation; (2) the location of the corporation's principal place of business; (3) the date of the meeting at which the board of directors adopted the order levying the assessment; (4) a description of the class or classes of shares assessed, and the amount of assessment per share; (5) the time, place, and manner of payment; (6) the day on which payment is considered delinquent; (7) if assessments are not levied on an equal basis, a statement that the equitable basis for the assessments is set forth in the order; and (8) a general statement that the board of directors may elect various remedies to enforce payment, including the auctioning of shares. Enacted by Chapter 367, 2007 General Session

Utah Code § 16-4-206 Service and publication of notice of assessment.

16-4-206. Service and publication of notice of assessment. (1) The notice of assessment required by Section 16-4-205 shall be: (a) personally served on each shareholder; or (b) sent by first-class mail to each shareholder at the address shown on the corporation's records. (2) A shareholder is responsible for providing the shareholder's current mailing address to the corporation for purposes of Subsection (1). (3) (a) Except as provided in Subsection (3)(b), a notice of assessment shall be published: (i) once a week for two weeks in a newspaper of general circulation in the location of the corporation's principal place of business; and (ii) in accordance with Section 45-1-101 for two weeks. (b) A water company may elect not to publish notice under Subsection (3)(a). Amended by Chapter 388, 2009 General Session

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title16/Chapter4/16-4-P2.html?v=C16-4-P2_1800010118000101Fetched: 10/26/2026